Forecast for FeSi supply in Russia

摘要

In H1 2021, production of FeSi increased by 6% to 277,000 t in Russia and exports rose by 8% to 205,000 t. The share of domestic deliveries increased by 5 p.p. to 85%. H2 results are likely to be lower due to imposition of export duty. A 15% export duty will be applied to FeSi deliveries beyond the Customs Union starting from August 1 until December 31 2021. Apart from the basic rate, the minimal rate of $150/t has been set. This measure aims to compensate a price rise for steel products used for governmental projects in the home market. Due to strong competition in the home market, it will be hard for Russian producers to compensate reduced margin of export sales with domestic deliveries. Russian producers are likely to exert pressure on foreign suppliers to raise their share in the home market.