The Ukrainian authorities have taken a decision to increase the export duty for ferrous scrap to a significantly higher level, which is basically believed to constitute a ban on overseas sales.
Specifically, Turkish market players consider shipments from Ukraine as not being possible anymore, and the development is expected to tighten the supply in the short sea segment.
On December 2, 2021, Ukraine increased the export duty for steel scrap to €180/mt from the previously valid €58/mt. Earlier, there had been an initiative to raise the tax to €200/mt but the final rate was approved at a lower level. Ukraine-based steel producers had been lobbying for the export tax imposition and its gradual increase for some years now, claiming that strong export activity harms their costs and margins, while preference should be given to domestic industries instead of selling overseas.
The new restriction, according to sources, still basically means a ban on scrap exports from Ukraine, at least for now. “With this decision Ukraine is now a no go,” a large scrap seller said. Within the January-October period this year, Turkey imported almost 400,000 mt of steel scrap from Ukriane, the customs data show.