Page 150 - RusRPTJan23

loaded (-3.6%). Loading of ferrous metals in January-October decreased by 1.6% to 55.8mn tonnes, and in October - by 11.7% to 5.3mn tonnes y/y. Although in September the backlog for ferrous metals was smaller (-7.4%, 5mn tonnes), their exports fell by almost 43% to 1.34mn tonnes. Export data for October was not published.
On October 3, Vedomosti wrote that in recent months the transportation of metallurgical goods for export has not been profitable. For some deliveries, the decline was up to 49%. At that time, shippers estimated the transport component in the cost of exporting metallurgical goods at 15–20%, whereas it is usually no more than 10%. In the eastern direction the costs reached a critical 30%, of which 60% was accounted for by the Russian Railways tariff.
The situation has been made worse by commodity prices coming off their recent highs. FOB China steel prices fell 26% to $556/t as of November 17 compared to the start of the year, according to the London Metal Exchange (LME).
Metallurgists have objected to plans to increase Russian Railways tariffs by 9.8% in 2023, as this will lead to an increase in the tariff burden on the industry above the forecast inflation. The industry has proposed raising tariffs to match the inflation rate of 5-6%, but so far there has been no decision.
The size of Russian Railways discounts is individual for each shipper, as it depends on the distance of transportation, but in general we are talking about 12–35%, says Pavel Ivankin, president of the Transportation and Infrastructure Research Centre. The subsidy scheme has been worked out on agricultural cargo and has proven successful, he continues.
● Ships
The implementation of the plan for the development of the Northern Sea Route (NSR), which is designed until 2035 and provides for investments of 1.8 trillion rubles ($28.6bn), will ensure Russia's export prosperity for decades to come under sanctions.
Where there's a will, there's a way. Whose tankers will carry Russian oil?
The biggest importers of Russia oil own 25.63% of the world tanker fleet. (27% if you count Indonesia). They also own 31% of the world chemical tanker fleet (which can double as product tankers).
150 RUSSIA Country Report January 2023 www.intellinews.com