The Ukrmetallurgprom Association of Enterprises has advocated prolongation of the export duty on ferrous scrap for another 5 years to normalize the situation with the provision of this raw material to domestic metallurgical enterprises.
"I am sure that this measure will be supported - the extension of the duty for at least another 5 years," said the president of Ukrmetallurgprom Oleksandr Kalenkov at a meeting in the Verkhovna Rada Committee on Economic Development on the functioning of metallurgical enterprises and their provision with scrap metal.
Deputy Chairman of the Verkhovna Rada Committee on Economic Development Dmitry Kisilevsky explained that the initiator of this meeting was "Ukrmetallurgprom".
Kalenkov, during his speech, noted that the association is concerned about the issue of providing Ukrainian enterprises with raw materials. At the same time, he pointed out that the limiting factor for the export of scrap metal is the export duty on the export of scrap, which allowed enterprises to improve the provision of scrap.
Also, the head of Ukrmetallurgprom pointed to the law on whitewashing the scrap market, adopted in the summer of 2020. “And our task is for investments to come to create a large scrap metal market,” Kalenkov noted.
At the same time, the president of the association expressed concern about the adoption of a law on waste, since if it is adopted without taking into account the proposals and comments of industrialists, the result may be negative, which will neutralize the positive from the adoption of the law on shading the scrap market.
In turn, Kisilevsky expressed confidence that the deputies will support the extension of export duties on scrap metal, since in the face of tightening environmental requirements, this raw material becomes highly demanded.
“Scrap is a raw material that can reduce CO2 emissions during steelmaking. Therefore, this is a valuable raw material, and this topic is very important for the state. And Green Deal will determine the situation in the coming decades. And it is likely that the requirements for the export of goods to the EU will be tightened, "the parliamentarian stressed, pointing out the importance of this issue for the state.
As reported, since September 15, 2016, the export duty on scrap metal, in accordance with the law adopted by the Verkhovna Rada in July, was increased from 10 to 30 euros per ton, and in the spring of 2018 - to 42 euros. Given the positive results of the metallurgical law and the production necessity of enterprises, the law was extended for another year.
The Verkhovna Rada on February 28, 2019 adopted as a basis and as a whole the law on reducing the deficit of ferrous scrap in the domestic market (No. 9474), increasing the duty on the export of scrap from 42 to 58 euros per ton and extending it for two years. This law entered into force on April 5, 2019. At the same time, the export of scrap metal for deliveries to the EU is carried out with a duty of 5 euros per ton.