Ukraine to restrict scrap exports

Ukraine to restrict scrap exports

SteelOrbis has learned from sources in Ukraine that; the Ukrainian government is very seriously considering alternatives to control and restrict scrap exports from the country, from which approximately 3 million tons of scrap is exported annually. There has been a huge lack of scrap supply felt by the local mills in Ukraine for the last few weeks, traders reported. Therefore most of the Ukrainian mills have filed their request with the Ukrainian government as domestic prices have risen almost to the same level with export prices. Obviously this has left not much incentive to carry on exporting scrap, however there is still the VAT that is paid back to the exporters as an issue as regards the scrap exports. The government has already hinted that the exports are going to be restricted in some form, which could be by means of a temporary ban, or a quota or any other way that is suitable and acceptable for the industry. Ukrainian exporters and local mills are pretty sure that the measures will be announced latest in 2-3 weeks time, once the VAT issue, which is still under discussion is solved.