The Ukrainian Association of Secondary Metals (UAVtormet) has called on the Ukrainian government to cancel the zero quota on exports of ferrous metal waste and scrap, arguing that domestic scrap market conditions have changed substantially since the restriction was introduced.
As SteelOrbis reported previously, in January this year the Ukrainian government approved the extension of existing restrictions on scrap exports through the end of 2026, setting export quotas at zero and effectively banning shipments. According to UAVtormet, the measure was originally introduced to ensure sufficient scrap availability for domestic steelmakers during martial law.
Ukrainian steelmakers reduce scrap purchases
Market participants cited by UAVtormet stated that Ukrainian steelmakers have substantially reduced their scrap purchase orders. Some companies, including Interpipe Dniprovtormet and Metinvest Resource, have completely suspended scrap purchases.
UAVtormet said there are currently no clear indications of a significant recovery in domestic scrap demand in the near term. As a result, the association stated that a persistent surplus of scrap has developed in the Ukrainian market.
Impact on scrap collection industry
According to UAVtormet, the zero export quota no longer serves its original purpose and is instead contributing to the accumulation of scrap inventories. The association stated that the restriction is worsening the financial condition of scrap collection companies, reducing collection volumes, forcing production sites to close and resulting in job losses. It added that the situation is also reducing tax revenues and foreign currency inflows. It further warned that maintaining the restrictions for a prolonged period could undermine the production capacity of Ukraine's scrap collection industry.
According to the association, damage to the existing scrap collection infrastructure could create supply problems for Ukrainian steelmakers once the economy and domestic steel production recover. Against this backdrop, UAVtormet has asked Ukraine's Cabinet of Ministers to amend the relevant resolution and cancel the zero quota on exports of ferrous metal waste and scrap classified under customs code 7204.
