Ceramet believes that ferrous scrap exports with duty of 30 euro per ton will become unprofitable if the scrap prices drop to $200 per ton FOB Black Sea. In this case the duty will start limiting the exports.
“As the duty is not linked to the price situation, its effects on the local market can be negated by high prices on main sales markets: Turkey, Egypt and Italy”, said the company CEO Vladimir Bubley.
According to him the good side of the duty increase from 10 to 30 euro per ton is that the state registration of scrap export contracts will be cancelled for the time.
He added, that in case purchase price on the local market falls below $130-150 per ton, scrap procurement would stop being attractive. This year scrap export volumes depend on world market situation and purchasing policy of major Ukrainian scrap consumers. These two factors can both decrease scrap exports and increase them to 2-3 million tons. (Ukrainian metal)