As of October 1, Russia implemented export tariffs on a very long list of goods - including most grades of metal - in an attempt to protect its local market. The tariff percentages are flexible depending on the ruble/US dollar exchange rate. Many metal grades will be unable to find enough domestic consumption - such as traditionally-exported brass and aluminium ingots - and exporters will therefore face difficulties in buying scrap.
Weaker LME levels have slowed activity in Ukraine where scrap yards rely on local prices and exchange rates to a large extent.
Poland is nearing parliamentary elections on October 15 when members of the Sejm and Senate will be elected for the coming four years. Meanwhile, Coface has published a report stating that the number of bankruptcies this year in Poland is 48% higher than in 2022 owing to geopolitical tensions in the region, inflation, lower consumer purchasing power and the weaker economy of Poland’s main trading partner Germany.
A joint meeting of the Polish and German recycling associations took place on September 14 in Gdansk, at which market participants discussed current mutual problems and plans for the year ahead. Many mentioned weaker profits this year as well as cautious hopes for a stronger 2024.