Ukraine’s Ministry of Economy is seriously considering a zero quota on scrap metal exports. This measure aims to strengthen the domestic steel industry and increase state revenues. If approved, it would remain in place until at least the end of 2025. Meanwhile, authorities plan to develop a long-term solution for regulating scrap re-exports.
Why the Export Quota Matters
Scrap metal plays a vital role in steel production, especially during the industry’s shift to greener practices. At present, Ukrainian scrap metal is exported to the EU with minimal duties. As a result, much of it is re-exported to countries like Turkey. This flow bypasses Ukrainian processing facilities and reduces the country’s economic benefits.
In fact, Ukraine lost over 2 billion UAH in 2023 alone due to these re-exports. Consequently, local steelmakers struggle to secure raw materials, while the state misses out on budget revenues.
Support from the Steel Industry
Industry leaders support the zero quota proposal. They believe it will secure raw materials for domestic producers and stimulate economic growth. Furthermore, it could help restore Ukraine’s steel production capacity, create jobs, and improve tax contributions.
Oleksandr Kalenkov, head of Ukrmetallurgprom, advocates for keeping the restriction in place until the end of the war and throughout post-war reconstruction. He also suggests maintaining it until Ukraine joins the European Union and adopts EU trade rules.
EU Developments on Scrap Export Policy
The European Union is also considering new restrictions on scrap metal exports. The European Commission has proposed duties of up to 25% on scrap exports to protect its local industries. These duties aim to reduce trade diversion and secure raw materials for EU aluminum and steel producers. Therefore, Ukraine’s planned policy aligns with broader European trends.
Strategic Impacts for Ukraine
Clearly, the proposed quota reflects the strategic role of scrap in the steel supply chain. While it could provide critical support to Ukraine’s steel industry, it must be carefully balanced. Authorities need to ensure compliance with international trade rules while maximizing domestic benefits.
Given the global competition for raw materials, Ukraine’s move could also impact regional supply dynamics. Nevertheless, preserving this strategic resource could offer long-term economic and industrial gains.
Conclusion
Ukraine’s plan to introduce a zero quota on scrap metal exports marks a bold step in strengthening its steel sector. It also addresses budget revenue losses and supports national sustainability goals. As global trade policies shift, this decision could reshape Ukraine’s position in the international metals market.
At SuperMetalPrice, we will continue to monitor how these developments affect metal prices and trade flows across Europe and beyond.
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