The Ukrainian Association of Secondary Metals (UAVtormet) forecasts the increase of ferrous scrap procurement next year by 20% YoY, to 1.2 million tons.
At the same time, expert Sergiy Kovalevskiy believes, that this year scrap procurement will be on the level of 1 million tons, of which 850 thousand tons will be used by Ukrainian metal companies to produce steel, while 150 thousand tons will be exported.
Interpipe Vtormet thinks that this year scrap procurement will be 900 thousand tons. The company doesn’t see the export duty as a problem for scrap export and procurement.
In May, exports to Poland reached 20 thousand tons with the EUR 3 duty.
According to UAVtormet, the situation in scrap procurement is worsening, in particular, in Kharkiv, Donetsk and Zaporizhzhya regions. The decrease in the purchasing prices of scrap in Ukraine affected the activity of scrap-procuring companies. Moreover, the delivery prices have increased to EUR 100 per ton.
A Ministry of Defence representative said that there were huge problems with scrap procuring due to mining. The large-scale demining of deoccupied territories is expected to begin in August.
“The destroyed war machines amount to 700 thousand tons,” he said.
At the same time, UAVtormet estimates the reserves of destroyed war machines at 800 thousand tons. (Ukrainian metal)