Ukraine Scrap Exports Cost Economy Hundreds of Millions: Metinvest Warns

Ukraine Scrap Exports Impact National Economy and Steel Industry

Ukraine faces a critical challenge as uncontrolled scrap exports cost the economy hundreds of millions. According to Metinvest Group’s COO Olexander Myronenko, scrap exports surged from 4,000 tons monthly at the war’s start to 50,000 tons today. This sharp increase results in substantial foreign currency losses, weakening the national economy and steel industry.

Myronenko emphasized that Ukraine loses approximately $800-$900 in foreign currency for every ton of scrap exported. Instead, processing scrap domestically would create added value, increase tax revenues, and generate jobs. Moreover, retaining scrap for local steel production supports financial stability and boosts national manufacturing capabilities.

From January to July 2025, Ukraine exported 248.34 thousand tons of ferrous scrap, up 66.4% year-on-year. Poland remains the primary importer, acting as a transit hub for Ukrainian scrap rerouted to Turkey, bypassing export duties. This trend threatens Ukraine’s strategic control over critical raw materials in an era prioritizing green metallurgy and decarbonization.

The Future of Ukraine Scrap Exports and Industry Competitiveness

Long-term global trade shifts will reduce scrap’s export role due to emerging barriers and strategic priorities. Countries increasingly view scrap as vital for green steel production and aim to keep supplies local. Therefore, maintaining affordable scrap prices domestically becomes essential to sustain Ukraine’s steel sector competitiveness.

Experts suggest Ukraine should prioritize exporting finished steel rather than raw scrap. Steel production adds more economic value and strengthens Ukraine’s tax base. Furthermore, supporting local processing aligns with global decarbonization trends and helps develop a resilient national industry.

SuperMetalPrice Commentary:

Ukraine’s uncontrolled scrap exports present a significant economic leak. As global markets pivot towards sustainable steelmaking, retaining scrap for domestic processing is crucial. Ukraine must enact policies restricting raw scrap exports and incentivize local steel production. This strategic shift will safeguard foreign currency, generate jobs, and align the steel sector with global ESG goals. As competition intensifies, focusing on finished steel exports will improve Ukraine’s long-term economic resilience and position in global metals markets.