Ukrainian scrap market urges government to resume scrap exports

The Ukrainian Association of Secondary Metals (UAVtormet) has called on the Ukrainian government to lift the zero quota for exports of ferrous metal waste and scrap, arguing that conditions on the domestic scrap market have changed significantly since the restriction was introduced.

As SteelOrbis reported earlier,in January of this year, the Government of Ukraine approved the extension of existing restrictions on scrap metal exports until the end of 2026, setting export quotas at zero and effectively banning shipments. According to UAVtormet, this measure was initially introduced to ensure sufficient scrap for domestic metallurgists during martial law.

Ukrainian metallurgists reduce purchases лома

Market participants referred to by Autormet said that Ukrainian metallurgists have significantly reduced their orders for the purchase of scrap. Some companies such as Interpipe Dneprovtormet and Metinvest Resource have completely suspended scrap purchases..

UAUTHORMET stated that there are currently no clear signs of a significant recovery in domestic demand for scrap in the near future. As a result, the association stated that there was a steady surplus of scrap on the Ukrainian market.

This has a negative impact on the collection industry. лома

According to UAVtormet, the zero-level export quota no longer serves its original purpose and instead contributes to the accumulation of scrap stocks. The Association stated that the restriction worsens the financial situation of scrap collection companies, reduces collection volumes, forces the closure of production sites and leads to job losses. He added that the situation also leads to a reduction in tax revenues and foreign currency inflows. He further warned that continued prolonged restrictions could undermine the production capacity of the Ukrainian scrap metal industry.

According to the association, damage to the existing scrap metal collection infrastructure may create supply problems for Ukrainian metallurgists as soon as the economy and domestic steel production recover. Against this background, Uavotmet appealed to the Cabinet of Ministers of Ukraine with a request to amend the relevant resolution and cancel the zero quota for the export of ferrous metal waste and scrap classified under the 7204 customs code.