The Association of Enterprises "Ukrmetallurgprom" appealed to the Prime Minister of Ukraine about the need to introduce a temporary ban on the export of scrap metal, this is stated in letter Ukrmetallurgprom to Prime Minister of Ukraine Denis Shmygal.
“In order to ensure the further development of the leading national industry, economic growth and national security of Ukraine as a whole, we ask you, dear Denis Anatolyevich, to support the position of the national mining and metallurgical complex and consider the possibility of an early implementation of a temporary ban on the export of scrap metal from Ukraine until 31.12. 2023 ", the document says.
According to the association, while neighboring countries are strengthening the protection of the domestic market and steel producers, Ukraine is becoming the most unprotected and accessible source of scrap metal, in particular, for Turkey, the world's largest importer of this raw material, which, by the end of 2020 imported 22 million tons of ferrous scrap.
Ukrmetallurgprom stressed that scrap metal is a critical raw material for decarbonization of Ukrainian metallurgy. It is its use that reduces the consumption of primary raw materials and, due to this, will reduce metallurgical emissions of CO 2 by 60%, as well as save 1.4 tons of iron ore and 740 kg of coal per 1 ton of recycled scrap.
“We believe that the uncontrolled export of scrap metal will lead to a significant slowdown in the growth of the Ukrainian economy: in particular, the deficit of this raw material in the domestic market will exceed 0.5 million tons, which will cause the volume of steel production to decrease by 9.5%, and products of metal processing and machine-building industries - by 3.8%. Even more critical will be the decline in exports of finished goods by 5.6%, which will lead to a loss of foreign exchange earnings to Ukraine by almost 1.4 billion US dollars. All this will have a negative multiplier effect on Ukraine's GDP, the growth rate of which will decrease by 0.4%, and the Ukrainian economy will lose more than 25 thousand jobs, "the letter says.
