The government has adopted Resolution No. 1795, which introduces a zero quota for scrap metal exports throughout 2026. According to the association, scrap exports from Ukraine have increased dramatically in recent years, creating a shortage in the domestic market, weakening raw materials. the safety of steelworkers and the destabilizing activities of the metallurgical sector.
Export flows are considered as bypassing duties
Ukrmetallurgprom stated that the export of scrap to the European Union has actually become a mechanism for circumventing the Ukrainian export duty of 180 euros per ton. The scrap shipped to EU countries was subsequently re-exported to countries such as Turkey and India.
According to the association, this practice has led to significant financial losses for the state budget, reduced scrap availability for Ukrainian steel mills, and the transfer of strategic raw materials to foreign competitors.
Emphasized value creation and tax revenue
Alexander Kalenkov, President of Ukrmetallurgprom, said that this decision will help protect national economic interests and increase the sustainability of the industry.
He stressed that the preservation of scrap in Ukraine allows domestic steel producers to produce products with higher added value, earn foreign currency by exporting finished steel and contribute significant tax revenues at all levels of government.
Industry estimates provided by the association show that processing one metric ton of scrap into steel in Ukraine generates about 14,000-15,000 hryvnias (331-355 US dollars) in taxes, while scrap exports generate about 100 hryvnias (2 US dollars) per ton, often through unofficial channels. In this context, the temporary restriction of exports was considered critically important for economic stability and the maintenance of domestic industrial potential.
Scrap preservation is related to decarbonization and CBAM
Ukrmetallurgprom also highlighted the growing strategic importance of scrap as a raw material for low-emission steel production, especially after the launch of a regulatory mechanism by the European Union.
