Ukrainian metallurgists ask to extend the export duty for scrap metal

Ukrainian producers of rolled metal have applied to the Verkhovna Rada with a request to extend the duty on the export of scrap metal for another 5 years. Otherwise, enterprises forecast a shortage of steelmaking raw materials on the domestic market of Ukraine.

Today, the country applies a duty on the export of ferrous scrap in the amount of 58 euros per ton. The duties expire in September 2021.

According to the director of Dneprostal, Andrey Korotkov, in the last 4 years the company managed to avoid downtime due to a shortage of scrap only due to the export duty. He also added that the procurement of recyclable materials in Ukraine is falling every year, which is an argument in favor of continuing restrictive measures.

The commercial director of Azovstal Boris Lyubich, in turn, drew attention to the fact that the removal of duties can lead not only to a reduction in the volume of scrap in the Ukrainian market, but also to a decrease in its quality: “first of all, high-quality clean raw materials will what will remain for us ”.

Ukrainian metallurgical enterprises are faced with a shortage of scrap metal even at the current duty, which means that the existing duty of 58 euros is not effective enough.