Ukraine’s Prime-Minister Arseny Yatsenyuk has ordered the minister for economic development and trade Aivaras Abromavichus to deal with the metal scrap deficiency.
In the first half-year metal companies were short of 440 thousand tons of scrap, while Ukraine exported 700 thousand tons.
“The loss of Crimea and the military activities in the East of the country have affected the scrap procurement. These regions yielded 1 million tons of scrap. Now Ukrainian metal makers have to use more expensive kinds of raw materials or import with 10% duties. Prime cost of the end product increases, while the competitiveness falls”, said the metal experts.
According to their calculations, scrap exports on the level of 850 thousand tons per year would not affect metal makers work.
“Taking into account 700 thousand tons exported in the first half-year, in the second not more than 150 thousand tons should be allowed for export. Moreover, due to the increase in scrap stocks for winter at around 200 thousand tons, the exports in the second half of 2015 should be stopped altogether”, they added. (Ukrainian metal)