Ukraine’s leading pipe enterprises in January-November of this year increased production of pipes from ferrous metals, according to recent data, by 15.7% year-over-year, to 906,200 tonnes, including 87,100 tonnes produced in November. A source in the industry told Interfax-Ukraine, in particular, the enterprises of the Ukrtruboprom association have increased pipe production by 31.4% over this period, to 649,000 tonnes. Including in November, output amounted to 69,700 tonnes.
In a statement released on Wednesday, Ukrtruboprom welcomed a decision of the Ukrainian authorities to raise the export duty on scrap metal from EUR 58 to EUR 180 per tonne.
“Ukrainian pipe manufacturers expected this measure to restrict the export of strategic raw materials six months ago. It was from the end of spring that the export of ferrous scrap became uncontrolled, which caused a shortage of raw materials and even the import of round billets,” Ukrtruboprom Director General Heorhiy Polsky said, who signed the statement.
At the same time, he noted the timeliness of the duty hike: “It is important that the decision necessary for the Ukrainian pipe industry was made at the beginning of the winter season, when the volume of scrap procurement, the main raw material for production of seamless pipe products, is traditionally reduced.”
According to him, the new export duty will help stabilize the situation with scrap in the domestic market: pipe industry enterprises will be provided with raw materials, and people – with jobs and wages. After all, the export of highly processed products brings to the Ukrainian budget 4 times more taxes than the export of unprocessed raw materials abroad, Polsky summed up.
