Ukrainian Parliament approves scrap export duty

Ukrainian Parliament approves scrap export duty

Further to the reports of last week, the export duty to be imposed on the scrap exports in Ukraine, has now been approved by the Parliament. The new law will come into force once it is signed by the President, which is expected to happen sometime next week. The ministry of economy and industrial policy is expected to allocate quotas based on its local scrap demand projections. The problem is caused by lack of scrap supply for Ukrainian domestic mills' consumption. For the first eight months of 2002, it is reported that Ukrainian mills were supplied with only 83.6% of their requirements. This amount is 4.4% less than the deliveries of the same period last year. Total tonnage of scrap exported this year is predicted to reach a number of 3.95 million mts by the end of this year. 41.2% of the total consumption is currently being exported.