Ukraine’s Ministry of Economy, Environment and Agriculture has proposed introducing an experimental mechanism for allocating ferrous scrap metal export quotas through electronic auctions in the Prozorro.Sale system. The initiative comes amid disputes between metallurgical enterprises and scrap collection companies over maintaining export restrictions, the Experts Club information and analytical center reports.
The corresponding draft resolution of the Cabinet of Ministers was published on October 30, 2026, for public consultation. The document provides for the allocation of quotas for exports of ferrous metal scrap and waste under Ukrainian customs classification code 7204 through electronic auctions. Auction winners will receive the right to use the corresponding quota volume and obtain an export license.
According to the Economy Ministry, the new mechanism is intended to ensure equal access to quotas for enterprises of different sizes, prevent excessive concentration among individual market participants and minimize anti-competitive practices. The proposal also provides for the redistribution of unused quota volumes.
However, the draft does not specify the total export quota. Therefore, its publication does not automatically mean the removal of existing restrictions or the resumption of unrestricted scrap metal exports. Comments on the document will be accepted for one month.
A zero quota on ferrous scrap metal exports has been in effect in Ukraine since January 1, 2026. It was introduced to provide the domestic metallurgical industry with strategic raw materials. At the same time, the government established certain opportunities for licensed exports by companies that won designated electronic auctions in December 2025.
The Ukrainian Association of Secondary Metals, UAVtormet, advocates revising the restrictions. Its president, Volodymyr Bubley, said during a September 16 press conference at the Interfax-Ukraine news agency that the effective export ban had resulted in declining scrap collection volumes, employee layoffs and the accumulation of unsold raw materials.
Industry representatives propose restoring controlled exports to the European Union with an annual quota of up to 200,000 tonnes. According to their figures, domestic scrap prices have fallen significantly: Ukrzaliznytsia sold scrap for approximately UAH 5,500 per tonne in 2026, compared with an average of UAH 8,500 in 2025.
According to UAVtormet, Ukraine exported only 13,860 tonnes of scrap in January–August 2026, compared with 283,060 tonnes during the corresponding period of 2025. Exports fell by 95.1%, while foreign currency earnings decreased from $85.4 million to $3.93 million.
Meanwhile, Ukraine produced 4.3 million tonnes of steel during the first eight months of 2026. Scrap collection amounted to 971,700 tonnes, while deliveries to metallurgical enterprises reached 925,400 tonnes.
Large metallurgical companies take the opposite position. The European Business Association has called on the government to maintain the zero export quota in 2027, warning of the risk of raw material shortages. As an alternative, the association proposes an export duty of EUR 180 per tonne.
The Ukrmetalurgprom association of metallurgical enterprises also insists that the actual balance between scrap collection and consumption should be determined before export restrictions are reconsidered.
Thus, the final decision on resuming exports will depend on the government, which must balance the interests of the metallurgical industry, scrap collection businesses and the broader economy amid the ongoing war.
