The industry insists on restrictions until the state establishes effective tax revenue mechanisms
Ukrainian metallurgists advocate for extending the ban on scrap metal exports. This is necessary to secure raw materials for domestic enterprises and protect the state's economic interests. This was reported by GMK Center citing Oleksandr Kalenkov, according to the portal PromPolitInform.
President of Ukrmetallurgprom Oleksandr Kalenkov emphasizes that during the war, access to scrap metal is a strategic security factor. The currently effective zero quota has ensured stable raw material supplies to the domestic market, whereas previously significant volumes were exported through transit schemes to the EU, avoiding a €180 per tonne export duty.
In 2025, scrap exports reached 448,700 tonnes, which is 53% higher than in 2024. According to the expert, such operations are often conducted by individual entrepreneurs, depriving the budget of tax revenue and the country of foreign currency earnings.
The economic role of scrap for recovery
The future recovery of the metallurgical complex directly depends on the local availability of raw materials. Plants such as Interpipe, Zaporizhstal, and Kametstal are planning to increase the share of scrap in steel production, especially amid limited access to pig iron and coal.
Processing this resource within the country is more environmentally friendly and complies with CBAM requirements, as electrometallurgy produces lower CO₂ emissions. Experts believe that exporting scrap metal during martial law negatively affects the industry’s competitiveness in the long term.
Export control mechanisms
The sector does not agree to lift restrictions without guaranteed budget revenues. Possible options include applying the €180/t duty to all countries, including the EU, or selling export quotas via the Prozorro system.
Lack of such decisions will make the export of a strategic resource unprofitable for the state. Until control mechanisms are implemented, the industry will insist on extending current quotas to preserve the production capacity of Ukrainian mills.
Photo: GMK Center
Read also: 90% of Ukraine’s metallurgy sector has halted; up to 7% of GDP is at risk — Forbes
