Ukrzaliznytsia intends to put up for auction over 3 thousand tons of non-ferrous scrap.
JSC “Ukrzaliznytsia” has prepared almost 2 thousand tons of non-ferrous scrap for sale. Of these, 1027 tons are lead, 769 tons are copper, 167.5 tons are aluminum. The volumes of available brass scrap are 25.28 tons, zinc – 5.1 tons, and bronze – 4.75 tons.
Additional 1117 tons of non-ferrous scrap of various types are in the process of being prepared for sale. That is, in total, this is about approximately 3,200 tons of non-ferrous scrap, which the company expects to sell at the ETS “Prozorro.Sales”. The relevant data were presented during a meeting of representatives of the property policy department of Ukrzaliznytsia with participants in the market for the procurement of non-ferrous scrap metals and their alloys, as well as experts and representatives of specialized associations regarding the conditions and effectiveness of auctions for the sale of secondary raw materials.
Ukrzaliznytsia owns a significant amount of non-ferrous scrap, which is generated daily during repairs, notes Tetyana Aksionenko, Deputy Director of the Property Policy Department of UZ. Therefore, the company is interested in rhythmic sales, as this will allow it to make a profit and free up space for new volumes of scrap, which are constantly accumulating.
During the meeting, representatives of raw material buyer companies drew UZ’s attention to several problematic issues, the solution of which could improve the efficiency of auctions. It is currently at a low level: according to Tetyana Aksionenko, recently out of 50 lots put up for auction, only 5-7 were successful.
Thus, business representatives emphasized the need to introduce a more flexible approach to payment. Currently, buyers must pay 100% of the lot value immediately after signing the contract, which, given the long delivery times, leads to the freezing of large amounts for a long time. Market participants proposed allowing payment for goods in installments (50/50 or 60/40). UZ representatives agreed to consider the option for individual metals, such as copper, since the sale of certain types of it often requires an additional assessment of contamination, which in itself is a lengthy process.
Delivery issues were also mentioned. According to some participants in the meeting, there are situations when some lots contain small amounts of scrap (20-100 kg) that are stored in remote locations. In such cases, the costs of transporting the raw materials often exceed their value. In response to this request, the UZ representative agreed with the need to group lots so that buyers could pick up large volumes in one place. She also agreed with the proposal to work out the possibility of sending small lots by mail at the buyer’s expense after signing the deeds. In addition, she reminded business representatives that UZ could agree with the client to change the storage location of the raw materials to a more convenient point if there is similar scrap there.
Some companies drew attention to the complex and slow procedure for obtaining permission to inspect scrap directly at the storage location. As a rule, it requires official correspondence between different levels of management, which takes up time allocated for preparing for the auction. In this case, UZ proposed to increase the period allocated for physical inspection of lots from seven days to two weeks. (Rail.Insider)