“In the next 5 years scrap procurement in Ukraine will be falling”, Denis Morozov, Interpipe economy and finances director, believes.
The previous forecast on scrap procurement in 2016 on the level of 2.8-2.9 million tons would probably be proven, he thinks.
In 2017 Morozov expects scrap procurement to fall by 100 thousand tons, to 2.7 million tons.
At the same time, the key issue is the Ukrzaliznytsia scrap.
“They have large volumes of scrap. If they put it on sale, this will dramatically change the whole picture”, Morozov said.
He estimates that at present Ukrzaliznytsia owns some 400 thousand tons of scrap, as it can cut at least 13 thousand old rail cars. (Ukrainian metal)