Following recent reports by London-based news agencyReuters whereby Russia is planning to raise export tariffs on steel scrap tobetween 120€ and 130€ per tonne, the Bureau of International Recycling sent aletter to the European Commission asking them to take action against thisinitiative.

The project is proposed to the Government of the Russian Federation by the Ministry of EconomicDevelopment and Trade of Russia, the Ministry of Industrial Trade of Russia,the Ministry of Finance of the Russian Federation, the Federal Customs Service andthe Federal Antimonopoly Service. Official sources reported that the draftdecree would come into force on 1 November 2008.

The absence of an import duty for steel scrap andother raw materials in combination with higher export duties would help theRussian steel industry to feed the numerous newly-installed mini-mills.

According to a market analyst scrap demand is likelyto increase by 10% in the coming year and should continue to grow. Russia collectsaround 30 million tonnes of scrap per year, of which 6 million tonnes areexported.