Ukraine Scrap Export Duty and Zero Quota Policy to Preserve Strategic Raw Materials

Scrap Export Duty and Zero Quota Policy Aim to Stabilize Ukraine’s Steel Market

The Ukraine scrap export duty and zero quota policy seeks to secure strategic raw materials for domestic steelmakers during ongoing military conflict. Ukrmetprom President Alexander Kalenkov stresses that Ukraine urgently needs effective market-stabilizing measures as scrap exports surge and local procurement shrinks. He highlights that the current €180 per ton duty slows direct exports to Turkey but fails to stop rerouting through EU states.

Kalenkov notes that exporters funnel Ukrainian scrap to border crossings and then to ports such as Gdansk, Klaipeda, and Varna. He argues that this flow ultimately feeds steelmakers in Turkey and India, which indirectly depend on Russian energy. As a result, Ukraine and the EU inadvertently strengthen competitors while weakening their own steel industries. He adds that Eurofer has explored a re-export fee, but slow EU processes limit timely action.

Ukraine faces a widening gap between rising exports and declining scrap availability. Scrap exports rose 54.1% to 311.8 thousand tons from January to September 2025. Meanwhile, annual domestic procurement collapsed to 1.2–1.5 million tons from pre-war levels of 4–5 million tons. These trends highlight the urgency behind the Ukraine scrap export duty and zero quota policy, which aims to retain feedstock for Ukrainian melt shops.

Ukraine Scrap Export Duty and Zero Quota Policy Set for 2026

The government plans to introduce a zero export quota on ferrous scrap starting in 2026 to reinforce supply security. This step builds on earlier measures, including export duties raised from €10 to €180 per ton since 2015. However, exporters increasingly bypass the rules due to free-trade agreements with the EU, which allow scrap to transit legally and reach non-EU buyers.

Kalenkov argues that Ukraine needs stronger coordination with European regulators because uncontrolled re-exports undermine both Ukrainian and EU steelmakers. The Ukraine scrap export duty and zero quota policy therefore reflects a broader strategic effort to protect national industry during wartime. The policy also aims to rebuild domestic processing capacity and reduce dependence on volatile global scrap flows.

As Ukraine continues military operations, the steel sector faces severe supply disruption. The combination of export restrictions, duty enforcement, and quota controls may offer short-term relief. However, long-term stability will depend on structural recovery, improved logistics, and stronger EU alignment on scrap trade rules.

SuperMetalPrice Commentary:

Ukraine’s move toward a scrap export duty and zero quota policy reflects deeper structural stress across Eurasian scrap markets. With procurement collapsing and exports accelerating, Ukraine risks losing the raw materials essential for its steel recovery. Europe also faces competitive pressure as diverted Ukrainian scrap strengthens Turkish and Indian output. Stakeholders should watch policy enforcement closely because any disruption in regional scrap flows can trigger price volatility across ferrous markets.