The volume of procurement of scrap metal in Ukraine increased by one and a half times and exceeded 3 million tons
For 9 months of 2021, the volume of procurement of scrap metal in Ukraine increased by 43.1% compared to the same period last year, to 3.13 million tons. Such a rapid growth in procurement was due to the balance of the market due to the favorable price situation, as well as some activation on the part of exporters.
Scrap metal supplies to Ukrainian metallurgical plants in January-September 2021 increased by 22.7% compared to January-August 2020 to 2.53 million tons.
As noted in the non-profit association UAVtormet, the declared needs of Ukrainian metallurgists in scrap metal during the reporting period were fully met, with an excess of 3.1%. “Thus, the deficit of scrap metal on the Ukrainian market is not confirmed,” the Association of Ukrainian Scrap Companies reported.
Technological stocks of scrap metal at enterprises have also increased and are estimated at no less than 120.0-125.0 thousand tons.
Exports of scrap metal in January-September 2021 amounted to 455.4 thousand tons, which is almost twenty times more compared to the same period last year, when only 25.6 thousand tons were exported. The growth in exports is due to the favorable situation in foreign markets, as well as a surplus of scrap metal in the domestic market.
Imports of scrap metal in the same period amounted to 17.2 thousand tons, which is significantly higher than last year's figure, when 13.6 thousand tons of scrap metal (+ 26.7%) were imported.
Recall that the Ukrainian government intends to completely ban the export of scrap metal until December 2022. The corresponding bill has already been published for public comment. However, Ukraine's initiative may be of interest not only to the country's public, but also to officials of the European Union, who expressed their outrage at the latest increase in export duties on the export of scrap from the country.
In the framework of the Memorandum of Understanding signed with the EU on macro-financial assistance dated May 22, 2015, Ukraine committed itself to refrain from introducing new trade restrictions or trade distorting measures in accordance with its obligations under the WTO. Restrictions on the export of scrap metal, according to EU officials, is an inappropriate way to solve the problems of the competitiveness of the Ukrainian metallurgical industry.