Ukrainian companies in January-May this year increased the export of scrap ferrous metals in 3.1 times compared to the same period last year – up to 77.452 thousand tons.
According to statistics released by the State Customs Service (SCS), the export of scrap metal for the period amounted to $23.028 million in monetary terms.
However, in March, April and May, there was an increase in exports of scrap metal: if about 8.28 thousand tons of scrap metal was exported in January and 16.5 thousand tons – in February, then in March – 15.45 thousand tons, April – about 16.19 thousand tons and May – 21.003 tons.
Exports of scrap metal in January-May 2023 was carried out in Poland (89.55%), Greece (7.51%) and the Netherlands (0.99%).
In the first two months of the year, the country did not import scrap metal, and in March-May imported 344 tons of scrap metal worth $138 thousand (41.30% from Slovakia, 18.12% from Poland and 13.77% from Estonia).
Earlier, the president of Ukrmetallurgprom Oleksandr Kalenkov wrote in his column on Interfax-Ukraine website that scrap metal is exported via the European Union, where a preferential export duty of EUR3 per ton operates, and from there the raw material is redirected to actual customers. To export scrap metal straight to customers would cost EUR 180 export duties and the Ukrainian budget has already lost 350 million hryvnias on it.
According to him, the State Bureau of Investigation has already taken interest in such export schemes.
The head of “Ukrmetallurgprom” urged to temporarily ban the export of scrap ferrous metals to provide the strategically important raw materials in the ongoing war.
“If scrap metal will remain in the country – more than 500 thousand people will have jobs, and the country will have millions of foreign exchange earnings from the export of steel. At the same time, the military also benefits, because metallurgists help the fighters a lot by buying equipment and cars for them, and even producing body armor. Nobody benefits from the export of scrap metal. That is why now the authorities should be proactive and temporarily ban the export until the situation stabilizes and stops threatening the national economic security,” says Kalenkov.
He noted that a ton of scrap metal, processed into steel, provides 10 times more to the budget than the export duty in the EU – about $300 per ton.
As reported, Ukraine in 2022, reduced exports of scrap ferrous metals in 11.5 times compared to the previous year – up to 53.557 tons, in monetary terms down to 12.4 times – to $ 19.271 million. At the same time last year, the country reduced the import of scrap metal in kind by 12.6 times – to 1.824 tons. Imports of scrap metal in 2022 was carried out mainly from Turkey (78.92% of supplies in monetary terms), Russia (13.25%) and Cyprus (5.08%), while exports – to Turkey (38.97%), Poland (34.25%) and Greece (10.12%).
