The Verkhovna Rada of Ukraine on December 2, 2021 decided to increase the duty on the export of scrap metal from 58 to 180 euros per ton by amending the final and transitional provisions of the Law of Ukraine No. 1419-IX on overcoming the deficit of scrap metal in the domestic market.
242 deputies voted for this decision, with the minimum required 226.
As a reminder, in May 2021 the export duty on ferrous scrap was extended until September 15, 2026.
This provision is contained in the draft law, which amends the annexes to the Law of Ukraine "On the State Budget of Ukraine for 2021" (in relation to the implementation of infrastructure projects and the development of social and cultural facilities).
The rate of duty on the export of scrap metal at 180 euros per ton is introduced from the next day after the publication of the law in official publications. According to the initiators of the changes, the increase in the export duty will help to increase the revenue side of the state budget from foreign trade operations with scrap metal.
During 11 months of 2021, the volume of scrap metal procurement in Ukraine increased by 36.6% (about 3.78 million tons of scrap metal were procured). Scrap metal supplies to Ukrainian metallurgical plants in January-November 2021 increased by 17.2% compared to the same period last year. The declared needs of Ukrainian metallurgists in scrap metal during the reporting period were fully met with an excess of 1.7%.
Exports of scrap metal in January-November 2021 amounted to 547.5 thousand tons (a significant increase in supplies compared to the same period last year, when only 33.0 thousand tons were exported). The growth in exports was due to a favorable situation in foreign markets and corresponding price levels, as well as a surplus of scrap metal in the domestic market.
