The Russian government is expected to exempt pig iron and certain types of long steel products from export duties, similar to what was done in the summer.

“There’s an important nuance: previously, the exemption of floating export duties was clearly established from 1 June to 31 August, and despite being signed on 7 July, the duties were lifted retroactively from 1 June, with the money later refunded to the companies. However, this time, the removal of duties will only take effect from the moment the document is signed. When it will be signed is still uncertain, likely in the second or third week of September," an industry source explains to Kallanish.

"This is the key nuance: the document has not yet been signed, although approvals have passed in most ministries, the final signing has not yet taken place,” he adds.

According to Russian media reports, this move primarily supports large producers like Industrial Metallurgical Holding and Novostal-M.

Russian media outlet Kommersant reported that the Russian government commission has cancelled variable export customs duties on specific types of pig iron and hot-rolled steel, referencing the Ministry of Economic Development. "The decision will support the profitability of exports by domestic metallurgical enterprises and help maintain production volumes," the ministry is quoted as saying. The corresponding government decree has not yet been published. 

The variable export duties were introduced from 1 October,2023 to 31 December 2024, set at 4-7% when the exchange rate is RUB 80-95 per dollar, and are nullified if the rate falls below RUB 80. Previously, pig iron and certain types of long steel products were temporarily exempt from duties from 1 June to 31 August.

Last week, it was also announced the Russian government decided to extend the moratorium on variable export duties for thermal coal and anthracite until 1 December 2024.