Page 142 - RusRPTDec22

9.2.12 Mines and Minerals - steel & iron
9.2.13 Mines and Minerals - fertilisers
NLMK may decrease rebar supplies by 62% y/y in November says Metal Expert. The steelmaker is expected to lower rebar shipments to 70kt mainly due to the overhauls across its mills, Metal Expert noted. As a result, total rebar deliveries may inch down 2% y/y to c1.9mt over 11M22.
The government plans to introduce 23.5% export duty on all fertiliser exports above $450/t export price from 2023 onward. High threshold will shield much of the export revenues, hence only export prices above $450/t will be charged with export duty. The government also considers leaving domestic fertiliser prices without the indexation.
A negative development, but not overwhelming, says BCS GM. “We reckon that Phosagro still enjoys elevated export prices (company said MAP price stood $777/t in 3Q22, we project prices next year to decline). Strong ruble has eroded some of the export margins. All in all, we think the impact from the export duties is material, but not critical – the earnings though affected will not be terribly reduced. Another story is no indexation for local fertiliser prices, that is also somewhat negative, but not overwhelming. So, Phosagro will continue to run FCF surplus and have resources for dividends.”
The US Department of Treasury has introduced sanctions against Kaliningrad-based Chlodwig Enterprises and Adorabella owning 43.7% in Russian fertilizer producer PhosAgro,
9.2.14 Mines and Minerals - other
The net profit of Russian aluminium giant UC RUSAL plummeted by around 52% on the year to 71.5bn rubles in January–September, as calculated under Russian Accounting Standards (RAS), the company said in a report late on November 1. Revenue shrank by about 55% on the year to 71.306bn rubles in the period, while sales profit plunged by 56.5% to 69.416bn rubles. Pretax profit decreased by 29.6% to 107.343bn rubles But other incomes jumped by 1,110% to 34.296bn rubles from about 2.858bn rubles.
Norilsk Nickel considers Tangier as a new hub for the distribution of metals, Tass reports, citing the company’s Director of Logistics Ravil Nasybullov. Previously, the products were delivered to the port of Rotterdam and then distributed to Europe, North America, and Asia. Starting from 1Q-2Q23, Norilsk’s corresponding transshipment hub will change to one of the North Africa ports, and the port of Tangier looks promising, Nasybullov said. The miner’s supply destination is expected to materially change in future with
142 RUSSIA Country Report December 2022 www.intellinews.com