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).
Month Russian market, $/t, EXW, without VAT, $1/RUR75.172* min max December 53 110 January 53 110 * – Ukrainian Hrivna and Russian Rouble exchange rates are as of 31.01.16 according to the National Bank of Ukraine and the Central Bank of the Russian Federation. (Ukrainian Metal)
The Ministry of economical development and trade has approved of the 2016 ferrous scrap balance with legislation violations, Metallurgprom and Federation of Ukrainian Metallurgists believe.
Metallurgprom has asked the Prime-Minister Arseny Yatsenyuk and the Ministry of economical development and trade to help in limiting ferrous scrap exports as the local market suffers from its shortage.
The ministry of economical development and trade wants to keep high scrap export levels despite the catastrophic shortages on the local market.
The Ministry of economical development and trade plans to create a list of equipment needed to conduct operations with metal scrap.
The state enterprise Ukrpromvneshexpertisa believes the UAH devaluation will have a negative effect on the local ferrous metals procurement.