Processing a tonne of scrap in Ukraine generates up to $1,200 in revenue
Ukraine should not lift restrictions on scrap metal exports without implementing an effective export duty to protect the domestic market and safeguard budget revenues. This was stated by the Federation of Metallurgists of Ukraine. This was reported by RBC-Ukraine (Сергій Новіков) citing the Federation of Metallurgists of Ukraine, according to the portal PromPolitInform.
The industry association noted that Ukraine currently maintains a zero quota on black metal scrap exports. At the same time, the ten-year validity period of the 180 euro per tonne export duty has expired, with the rate returning to the baseline level of 10 euros per tonne as of September 16.
According to metallurgists, reopening exports under present conditions would be premature. They emphasize that significant volumes of raw materials were previously shipped to European Union countries under preferential terms, leaving the state budget without full fiscal benefits.
Economic Impact of Domestic Processing
Industry representatives insist that if the export duty mechanism is reinstated, it must apply equally regardless of the destination country. According to association calculations, processing one tonne of scrap into finished steel products inside Ukraine generates roughly 15,000 UAH in taxes and fees, alongside nearly $1,200 in foreign currency earnings.
By contrast, direct raw scrap exports yield only $250 to $350 per tonne in export revenue and significantly lower tax receipts. While current domestic scrap consumption has dropped due to Russian attacks on industrial facilities, demand is expected to rebound as capacity recovers.
Decarbonisation and Supply Rules
Demand for scrap metal is set to grow further driven by industrial decarbonisation goals and compliance with the EU Carbon Border Adjustment Mechanism (CBAM). Consequently, effective export duty legislation must be enacted before any revision of the zero quota takes place.
Previously, scrap collectors urged the government to allow exports specifically to EU nations. Prior to restrictions, most scrap moved through Poland to Turkey duty-free, yielding only 104 UAH in tax revenue per tonne for Ukraine. Effective January 1, 2026, the Cabinet of Ministers of Ukraine restricted scrap exports for the full year to supply defence and rebuilding efforts.
Illustrative photo: Shamil Khakirov / CC BY-SA 2.0
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