DON OF THE YARDS: Pros and cons of exporting ferrous scrap from Russia

Nov 11, 2011 | 05:43 AM |

With markets on an obvious downtrend and the world economy stagnating, I would like to introduce readers to the current Russian ferrous scrap export situation. There have been many rumours of possible export bans and curbs on Russian ports. However, I will try to shed some light on the situation at export terminals in the country. Russia has the largest territory in the world and, with excellent access to scrap material everywhere from the Baltic Sea to the Bering Strait, you would expect it to be very attractive to buyers. Things are not that easy, though. The main and largest port for steel scrap exports is St Petersburg, in the west. The port is very well equipped for loading vessels ranging from 2,000 tonnes to 35,000 tonnes for breakbulk shipments. Most bulk HMS material goes to Turkey, with big vessels occasionally going to the main Asian markets of Taiwan, Vietnam and Korea. St Petersburg is also able to handle materials such as steel turnings and borings for bulk shipments to Spain and container shipments to India and Thailand. Quantities of railroad scrap – such as axles, rails, wheels and cut wagon bodies – are also exported to India and Vietnam in containers. The port also benefits....