Ukrainian steel producers are appealing for a scrap metal export ban until 2023 to curb rising scrap exports that are likely to threaten domestic raw material supply, according to the country’s steel union.
The union stated that the continuous rise in exports could lead to a 500,00mt scrap shortage this year for local producers, subsequently leading to 9.5pc decline in steel being produced in Ukraine. They added that the export duty of $69 per mt would not be sufficient for slowing down exports.
Ukraine’s producers bought approximately 750,000mt of scrap in the prior year. Steel exports from the country jumped 7.5pc in H1 2021 to approximately 11mn mt. As a result, scrap metal prices had nearly doubled over the past year to $468 per mt. If the issue is not addressed, the union stated, exports could surpass 1.5mn mt this year.