A draft decree No. 5175 to prolong the ferrous scrap export duty in the amount of 58 euro per ton for 5 years has been registered in the Verkhovna Rada.
The accompanying note says that the positive effect of the duty has been noticed since its implementation in 2016.
In particular, while in 2015 scrap exports accounted for 39.1% of domestic consumption, in 2019 the share fell to 1.4% and in January-November 2020 – to 1.27%.
The scrap shortage decreased from 0.85 million tons in 2015 to 0.6 million tons in 2016 and 0.3 million tons in 2017, while since 2018 domestic metal companies had not been reporting scrap deficiency.
According to the note, if the duty is retained, the GDP will grow by 0.03%, 21.5 thousand jobs will be preserved and around 3.5 thousand new jobs will be created. (Ukrainian metal)