The Ministry of economical development and trade plans to pass to the Verkhovnaya Rada the decree on scrap market decriminalization.
Ukraine is suffering from the drastic shortage of scrap. This has already affected output and the country economy, say Zaporozhye and Mariupol mayors in their letter to the parliament.
The Parliament committee on industrial policy has suggested imposing a scrap export duty on the level of 30 euro per ton.
On April 25, the Ministry of economical development and trade plans to give out another batch of ferrous scrap export quotas.
In January-March Ukraine procured 614 thousand tons of scrap. That’s the lowest result for the past 20 years. And the first time that the procurement can’t meet the local demand.
Ukrpromvenshexpertisa has noted the increase of ferrous scrap prices from February 20 till April 10, CIF Turkey by 50%, or by $85 per ton, to $255 per ton.
In May Ukraine will produce 2.2 million tons of steel, 2.1 million tons of pig iron and 1.9 million tons of rolled metal, according to Metallurgprom. For April its figures were as follows: steel – 2.1 million tons, pig iron – 2 million tons, rolled metal – 1.8 million tons.
The police have started investigating the decision of the Ministry of economical development and trade to register scrap export operations.
In January-March Ukraine exported 11.54 thousand tons of ferrous scrap valued at $2.46 thousand, down by 95.7% and 96.4% YoY respectively.
A lot of works in Ukraine are being cut for scrap metal, as it can be profitably sold to foreigners.
The Verkhovnaya Rada of Ukraine has passed a decree on the increase of ferrous scrap export duty from 10 euro to 35 euro per ton for three years.
The Verkhovnaya Rada tax and customs policy commission has voted for the acceptance of the decree that imposes 0% duty on imported metal scrap.
The industrial policy and entrepreneurship commission of the Verkhovnaya Rada has supported the decree on the metal scrap export duty increase.
The Ministry of economical development and trade has allowed exporting 143.8 thousand tons of metal scrap.
The Ministry of economical development and trade will be giving ferrous scrap export quotas.
The Cabinet of Ministers has simplified the registration of the ferrous metals scrap export contracts.
In January-February Ukraine exported 9.99 thousand tons of ferrous metals scrap, down by 92.7% YoY.
Ukrainian Metallurgists Federation and Metal and Miner Union have addressed the President Petro Poroshenko asking him to prevent implementation of the new railroad transportation tariffs and review the balance of scrap procurement and local consumption for 2016.
In February scrap procurement totaled 181 thousand tons, with local market shortage at 53 thousand tons, or 23% of the needs (234 thousand tons).