Implementation of scrap metal export duties could be a compromise between metallurgists and scrap procurers, says Metinvest CEO Yuri Ryzhenkov.
“Almost all of Ukraine’s neighbors more or less limit scrap exports. They retain raw materials and export products with more value added cost. Often WTO allowed export duties are implemented. Export quotes are not as nice – we used them and they were not very clear”, he said, adding that Metinvest imported some 80 thousand tons of scrap per month.
Zaporizhstal CEO Rostislav Shurma believes 95-98% of the Ukrainian scrap should go to local metal companies. Zaporizhstal consumes around 30-35 thousand tons of ferrous scrap per month.
He also noted that the scrap market situation was very difficult.
“It has to do with the weak policy of the Ministry for economics – they have simply opened the gates for scrap exports from Ukraine”, he stressed.
“Metal scrap, raw materials with the lowest level of steelmaking, could be exported in vast volumes, while it could be difficult to sell rolled metal on some markets. For example, US market of flats is completely closed by the anti-dumping. Turkey, India and Pakistan carry out antidumping investigations. A lot of non-tariff limitations are imposed in Europe”, said Shurma. Zaporizhstal is unable to sell enough metal there. (Ukrainian metal)