The volume of ferrous scrap harvesting in Ukraine has decreased by 6 times over the years of independence, to the lowest levels during the large–scale war. At the same time, the prospects for a return to more or less significant growth in the industry are quite sad. Analytical writes about this
GMK-Center in the article "Disappearing resource: Challenges for Ukrainian scrap harvesting"
"Deindustrialization of the economy has become the main factor determining the state of the scrap market in Ukraine. This is an irreversible process. Analysts' calculations show that the previous volumes of scrap harvesting have remained in the past, most likely forever," the article says.
According to the GMK-Center, the growth of scrap in Ukraine occurred in the second half of the 1990s. In 2000, the industry reached a historic maximum of 11 million tons due to the disposal of Soviet industrial heritage, and then, since 2001, it has been in steady decline due to low investment levels.
The renewal of the metallofund and the actual "disappearance" of entire sectors of Ukrainian engineering.
"The main source of scrap in Ukraine in recent years has been depreciation scrap, which accounted for up to 75%. In other words, this industry has worked and continues to work on the accumulated
A Soviet-era resource. This resource is not being replenished properly due to low steel consumption in Ukraine," the GMK-Center emphasizes.
The war has deepened the problems of resources and scrap harvesting. Part of the Ukrainian territory was occupied or the scene of active hostilities. Currently, the volume of scrap in Donetsk, Lugansk, Zaporizhia, Kherson, partly in Kharkiv and Sumy regions is close to zero. Previously, these regions provided about 1 million tons of scrap per year.
It is impossible to compensate for the lost volumes by increasing harvesting in other regions.
As we discussed above, the potential for scrap production in other territories is limited. The Soviet industrial heritage was mainly concentrated in
Industrial regions of the east of Ukraine.
Active military operations, economic decline, decline and stagnation of industrial production, emigration from the country and staff shortages, mobilization processes have a negative impact on the scrap industry. As a result, the number of market participants is decreasing. In 2009, there were about 1,700 scrap harvesting companies in Ukraine. Now, according to expert estimates, there are no more than 100-120 of them left, with an active number of scrap collection sites from 250 to 300.
"Therefore, obviously, the Ukrainian scrap harvesting will continue to be at plus or minus the current level. The players remaining in the industry do not have available scrap due to deindustrialization and economic decline in 3.5 years of full–scale war; there are no prospects
