As a result of the implementation of the law which cancels 20 percent VAT on
scrap operations in
Ukraine, effective as of January 1, 2007, all Ukrainian steel producers have lowered their procurement
scrap prices. Thus, if
scrap was quoted at the level of UAH 1,250-1,275/mt ($249), including VAT, at the end of December 2006, then the current price of
scrap is around UAH 1,050/mt ($208), excluding VAT.
However, as SteelOrbis has been informed, uncertainty persists in the Ukrainian domestic market about what to include in the procurement
scrap prices. Although the price level is more or less the same all over
Ukraine, different steel plants include various surcharges in it. The most common question is whether or not to include railways tariffs in the prices. Thus, according to the information received from a reliable Ukrainian industry source, some producers include railways tariffs in the above-mentioned price, while others do not. Consequently, the
scrap prices are not settled yet in
Ukraine.