Page 142 - RusRPTAug22

reactivating nuclear power plants, arguing that this would not solve Germany’s energy needs.
9.1.11 Metallurgy & mining sector news
Russian gold miners face export ban due to discounts, RBC informs. Russian gold miners, forced to sell gold abroad on their own, experienced the fact that the Russian authorities (in particular, Federal Assay Chamber) do not approve export deals if companies sell the product at a discount. However, the Union of Gold Producers is currently discussing with the Ministry of Finance and the Ministry of Industry and Trade two possible ways out of the situation – the setting of a specific discount as a percentage, below which exports are prohibited, or permission to export gold at negotiated prices without any restrictions on specific figures.
Coal poured into the Antwerp-Rotterdam-Amsterdam region -- a huge transport hub for energy and commodities -- in the first half of this year, with imports surging 35% to 26.9mn tonnes compared with the same as Europe hunts for alternative fuels to Russian gas.
Russian scrap demand may fall 30% y/y in 2022. Lower prices for raw materials in steel production could allow Russian steelmakers to cut costs and moderately improve their operations – slightly positive. Demand for Russian scrap may decline by 30% y/y to c19mt in 2022 – RBC, citing the director of Ruslom Viktor Kovshevniy. The demand in Russia has already dropped c21% y/y to 10mt in 1H22, the association estimates. Meanwhile, the scrap’s exports (outside the EAEU) collapsed 80% y/y to 244kt in January-May (the agency has not provided June figures). Decline in scrap purchases by Russian steelmakers (they are cutting steel output) have resulted in lower local demand. The raw materials’ exports slumped due to unfavorable export duty (rose by 30% to EUR 100/t, or $100/t, from 1 January) and a rise in the cost of freight and logistics by several times, a sharp drop in demand for scrap, problems with bank settlements and an increase in costs for settlement and cash services with foreign counterparties, Ruslom concluded.
142 RUSSIA Country Report October 2020 www.intellinews.com