Ukraine announces substantial hike in scrap export tariffs

By Anil Mathews (ScrapMonster Author)

April 26, 2016 05:29:13 AM

MOSCOW (Scrap Monster): The Ukraine Parliament has approved the bill proposing hike in scrap export tariffs. The government has decided to hike the scrap export tariff, including stainless steel scrap from the existing €10/ton to€30/ton. The new export tariffs will be valid for a period of three years. The sharp rise in tariffs is expected to increase address the scrap supply shortage faced by domestic steel manufacturers.

Earlier in March this year, the Ukraine’s Economic Development and Trade Ministry had approved scrap metal balances for 2016, lowering it slightly to 1.1 million tons, when compared with the export limit of 1.21 million tons in 2015. The scrap export volume was not reduced much despite repeated requests by metal producers’ trade group.

The total scrap metal production by the country in 2016 is planned to total 4.6 million tonnes. Nearly 76% of the total scrap metal production will feed domestic markets. The supply of scrap metal to domestic market is estimated at 3.5 million tonnes. The supply to domestic market had totaled 3.07 million tonnes in 2015, accounting for 71.7% share of total scrap metal production during the year. Incidentally, 4.28 million tonnes of scrap metal was produced in 2015.

The domestic market in Ukraine currently faces huge shortage of scrap metal, which has even led to stoppage of operations by a few companies. The tripling of export tariff is expected to place more restrictions on scrap metal exports, which in turn may address the shortage of scrap metal in local market.