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The Verkhovna Rada will consider a bill to legalize the market of scrap metal

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Representatives of scrap procurement and processing of metallurgists unanimously supported a bill to legalize the market of scrap metal in Ukraine.

The Verkhovna Rada will consider a bill to legalize the market of scrap metal

Monday, October 28, at the Committee of the Verkhovna Rada of Ukraine on issues of economic development approved a bill aimed at deregulating the market of scrap metal. The meeting was attended by representatives of scrap iron and steel enterprises.

As reported in the group Interpipe, whose representative also attended the event, during the discussion of the bill with representatives of the scrap metal companies and steel enterprises, the document was supported by all market participants, and the deputies promised to register it in the coming weeks.

"Document will bring the scrap from the shadows and make the industry itself more transparent. In addition, the meeting was in favour of this bill became the basis for the regulation of the procurement of scrap metal," - said Valentin Makarenko, Chairman of the Board Interpipe Vtormet.

Tasks, which in the opinion of the authorities and business should decide the bill:

  • Remove unrealistic demands to scrap-collecting points.
    • to Eliminate the artificial separation between industrial and household scrap – a long trough of corruption.
      • Remove artificial ban on cash payment means with the reception of scrap - a source of orders for the konvertatsionnykh of the centers.
        • Eliminate the acts of inspection of producers of scrap – another corrupt shithole.
          • Remove criminal liability for the lack of enterprises-producers of scrap in the registry that doesn't exist a conflict of laws, according to which criminal liability may be incurred by anyone who deals with scrap metal.

          As reported, according to the forecast, in 2019 the supply of scrap metal for metallurgical enterprises of Ukraine reduced by 6% compared with the previous year to 3,128 million tons.

          Ukrainian enterprises in January-September, 2019, reduced the export of ferrous scrap at 7.6 times, compared with the same period of 2018 to 40.63 thousand tons (in January-September 2018 — 307,92 thousand tons).

          15 September 2016 the Verkhovna Rada has increased the export duty on scrap metal from 10 to 30 euros per ton, and in the spring of 2018, duty, despite the active opposition of the European partners of Ukraine, was increased to EUR 42 per tonne.

          In "Interpipe" has repeatedly stated that Ukraine "stimulates" exports of scrap metal, while metallurgists have to go to the Russian raw materials – hot iron.

          "scrap – a key business for vertically integrated production Interpipe. Work in this area is complicated by the shortage of raw materials in the country", - stated in the company.

          the Largest buyers of scrap metal in Ukraine are the group "Interpipe" Viktor Pinchuk "Metinvest" Rinat Akhmetov.

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