Russia currently applies a tax of 15 percent, or no less than 15 euros ($23.60) per ton, on exports of scrap used to make steel.
"We forecast a deficit as a result of the implementation of all the projects. A tariff that is too low allows for distortion of competition," the source said.
The country, a net steel-scrap exporter, is consuming more domestically as the booming construction sector demands more steel. Processors supply major steelmakers, including Severstal and Magnitogorsk Iron and Steel Works.
The government source said steel scrap demand in Russia would increase by 10 percent next year and forecast that it would continue to grow at similar rates in the few years that follow.
He said he did not foresee a major reduction in steel-scrap exports because of the higher tariff, which is currently being reviewed within the government.
Demand growth is also being driven by the construction of new mini-mills, modern steel mills that run on scrap and produce steel products mainly for the construction sector.
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