Ukrzaliznytsia has asked the Cabinet of Ministers to allow it selling a part of its scrap to major global metal manufacturers via direct agreements without export duty.
“There is an idea to sell a part of scrap for export at the external prices, which are 2-2.5 times higher than in Ukraine. Back in April, we asked the government to correct the existing order of the Ukrzaliznytsia property management to sell scrap without the export duty,” the company chairman Yevhen Lyaschenko said.
Since 2021, the duty has been set at the level of EUR 180 per ton.
The scrap could be sold to ArcelorMittal, Voestalpine, U.S. Steel and Moravia Steel.
“Selling via middlemen and commercial companies is not clear and bears corruption risks. We are interested in the agreements being direct,” he added.
The share of scrap to be sold directly is estimated at 25-30%.
As of the beginning of the year, Ukrzaliznytsia’s scrap stocks amounted to 184 thousand tons. (Ukrainian metal)