Ukrainian Railways Sells Ferrous Scrap in Record Auction
On June 13, 2025, JSC Ukrainian Railways (UZ) announced the sale of more than 8,500 tons of ferrous scrap metal. The auction will take place on the Prozorro.Sales platform, with a starting price of UAH 62.27 million. This auction will include 21 different lots, consisting of various types of scrap such as railway wheel axles, engine parts, wagon body parts, springs, and other metal waste. The average price per ton is UAH 7,220. However, prices will vary depending on the type of scrap. They will range from UAH 5,320 to UAH 7,600 per ton.
The sale marks a significant push by Ukrainian Railways to capitalize on its scrap metal reserves. The auction is scheduled for June 23, 2025. The deadline for submitting bids is 8:00 p.m. on June 22. This move follows several unsuccessful auction attempts in recent months. The company aims to raise funds by disposing of these materials. This is a necessary step as Ukrainian Railways attempts to optimize its assets during a period of financial and operational adjustments.
Factors Driving the Auction: Ukrainian Railways’ New Scrap Metal Strategy
In the first nine months of 2023, Ukrainian Railways sold only 76,400 tons of ferrous scrap. This was significantly lower than its planned target of 170,000 tons. The poor performance was largely due to a lack of proper procedures and hurdles in the approval process for asset disposal. However, after the Cabinet of Ministers simplified these procedures, Ukrainian Railways has resumed scrap sales, offering over 12,000 tons in two rounds of auctions since May 2025.
The government’s decision to allow the company to make independent disposal decisions for properties valued under UAH 500 million has facilitated these efforts. As a result, Ukrainian Railways expects to sell over 218,600 tons of ferrous scrap. They also plan to sell an additional 3,800 tons of non-ferrous metal scrap. This could raise an estimated UAH 1.8 billion in total revenue.
Impact and Future Outlook: The Importance of Scrap Auctions for Ukrainian Railways
The sale of these scrap metal lots serves as an important revenue stream for Ukrainian Railways. This is particularly significant during a time of restructuring. With the simplified approval process and more flexible auction strategies, Ukrainian Railways is expected to increase its earnings significantly. This should contribute to both financial stability and operational efficiency. Moreover, the company is expected to continue auctioning large quantities of scrap. They might achieve their annual scrap disposal targets.
As the market for scrap metal remains volatile, these auctions may be essential for maintaining the railway operator’s balance sheet. The prices and quantity of metal being sold could further impact the global scrap metal market as well as the local Ukrainian economy in the coming months.
SuperMetalPrice Commentary:
The ongoing auctions held by Ukrainian Railways underscore the critical role of scrap metal disposal in the company’s financial health. They also emphasize its efforts to streamline operations. With the government’s recent decision to simplify property disposal procedures, Ukrainian Railways is poised to improve both its fiscal standing and its scrap management. However, the volatile nature of the scrap metal market could still present challenges for the company, particularly as it navigates broader economic conditions. Industry players and analysts should watch these auctions closely for further insights into the global scrap metal market.
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