The ministry of economical development and trade wants to keep high scrap export levels despite the catastrophic shortages on the local market.

According to the ministry statement, it sees steel smelting in 2016 on the level of 24.5 million tons, up by 6.5% YoY. 3.5 million tons of scrap are to be supplied to the local market (76% of the total procurement), up from 3.07 million tons last year. And it wants 1.1 million tons of scrap to be exported.

Scrap procurement is expected on the level of 4.6 million tons, up from 4.28 million tons in 2015.

But the metal makers say the scrap distribution doesn’t meet their demands.

In 2015 metal companies received 3.1 million tons of scrap, down by 22% of the volume needed. In January scrap supplies fell to 160 thousand tons, or 55-60% of the needs.

Metal companies still ask the government to increase scrap export duty from 10 euro per ton to 35 euro and cancel the 5% import duty. (Ukrainian metal)

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