17 Mar 2014 Last updated at 03:51:24 GMT

MOSCOW (Scrap Monster):  Rusmet- the Russian metals and scrap markets research agency has announced that the recent tensions in Ukraine may severely hurt the Russian scrap export market. The blockades in transit through Ukrainian ports may bring down the export shipments of scrap from Russia. This in turn may damage the trade between two countries, thereby causing serious implications on scrap traders in Russia.

According to statistics, Ukraine ports account for nearly 7% of the total shipment of scrap by Russia.

The scrap exports from Russia had declined considerably during 2013. The country’s scrap exports had totaled 3.71 million tons during the entire year, 14.6% lower when compared to the exports during 2012. Russia had exported 4.34 million tons of scrap during 2012. The crisis situation in the region may result in further drop in Russia's scrap exports to Ukraine and to the rest of the world.

Reports indicate that Turkey-the world’s largest steel scrap importer too is worried over the escalating crisis in Ukraine. The political uncertainty in Turkey and the plunging currency has already taken a toll on scrap shipments into Turkey. The apparent slowdown in domestic steel industry has further added to the woes of scrap industry. Any cut in scrap flow from Russia and Ukraine may affect the overall imports by Turkey- the nation that consumes almost one-fifth of glabal scrap volume.

Author: Paul Ploumis