Ukrainian scrap metal exports continue to rise, posing a direct threat to the recovery of the domestic steel industry. At the Business Wisdom Summit 2025, Metinvest Group’s Chief Operating Officer, Olexander Myronenko, emphasized that scrap exports have become economically unprofitable for the state.
Domestic Steel Production Faces Raw Material Shortage
The ongoing increase in scrap exports has worsened raw material shortages for Ukrainian steelmakers. According to Myronenko, scrap exports in 2024 surged nearly sixfold compared to 2022. Ukraine currently sells scrap for around $250 per ton, while steel products fetch between $550 and $600 per ton on international markets.
This pricing imbalance significantly impacts Ukraine’s economic potential. Using one ton of scrap for steel production can generate an additional UAH 1,200 in foreign exchange and UAH 15,000 in taxes. As Myronenko stated, restricting scrap exports would secure essential materials for steelmakers and boost domestic production.
Tariffs, Labor Shortages Add Pressure on Steel Sector
In addition to raw material shortages, rising tariffs from state monopolies are increasing operational costs for steel producers. Since 2021, electricity transmission costs have risen 2.3 times, gas transport tariffs have quadrupled, and railway tariffs have climbed 1.7 to 2.4 times.
The industry also faces a labor shortage, with staffing gaps of 10–15% across operations. These combined challenges hinder competitiveness and long-term growth. Myronenko stressed the need for immediate policy action to stabilize and protect Ukraine’s steel industry.
Recent export data shows that Ukraine shipped 293.2 thousand tons of scrap metal in 2024, a 60% increase year-over-year. In Q1 2025 alone, exports reached 80.9 thousand tons, up 32% compared to the same period in 2024, though down 10.9% from Q4 2024. These trends underscore the urgency of addressing export regulation.
As reported by SuperMetalPrice, limiting scrap exports could help revitalize the domestic steel sector, protect jobs, and improve national economic performance.
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