Metallurgprom and Federation of Metallurgists of Ukraine have addressed the deputies to support the decrees on increasing ferrous scrap export duty from 10 euro per ton to 35 euro for 3 years and cancel the 5% import duty.
In 2015 Ukraine suffered from the scrap deficiency. As of January 1, metal companies stocked 105 thousand tons of scrap. With the need of 3.92 million tons of scrap in 2015 they received 3.07 million tons. The reason of this shortage is the scrap export. In 2015 it totaled 1.2 million tons, the largest result for the past 10 years. The main importers of Ukrainian ferrous scrap were Turkey (77%) and Transnistria (21%).
January saw another worsening of the situation: companies received 160 thousand tons of scrap, down by 38% MoM, or by 100 thousand tons.
In January scrap stocks decreased by 30 thousand tons and now total some 75 thousand tons, as opposed to 235 thousand tons in early 2015.
Metallurgprom and the Federation say that with scrap exports the state loses millions UAH of taxes. From 1 ton of exported scrap the state gets 240 UAH of export duty. But if this ton were made into steel, the state would get 2100 UAH of taxes. (Ukrainian metal)