In light of the strengthening global trends towards decarbonization in metallurgy, scrap metal is gaining increasing strategic importance for global steel production. This was stated by the president of the association of enterprises “Ukrmetallurgprom,” Oleksandr Kalenkov, commenting on the introduction by the Cabinet of Ministers of Ukraine of a temporary “zero” quota on the export of scrap metal from the country.
This is reported by Finway
Increasing Demand for Scrap Metal Amid Export Restrictions
According to Kalenkov, countries around the world are implementing restrictions on the export of scrap metal to support their own metallurgy, which is focused on environmentally friendly technologies. He noted that competition for this raw material will only intensify in the coming years.
“Countries around the world are beginning to restrict scrap exports to support their own, more environmentally friendly steel production. In the future, competition for this raw material will be even tougher,” he said.
The government’s decision regarding the temporary “zero” quota aims to ensure a sufficient supply of scrap metal for Ukrainian metallurgical enterprises and to stop schemes for evading export duties.
Causes of Scrap Metal Shortage and Economic Impact
As Kalenkov explained, since the beginning of the full-scale invasion of the Russian Federation into Ukraine, the volumes of domestic scrap collection have sharply declined – from 4.1 million tons in 2021 to 2 million tons in 2025. This is due, in particular, to the occupation of industrial regions in the east of the country, the mobilization of workers from scrap collection enterprises, and the limited capabilities of companies during military actions.
At the same time, despite the reduction in collection, scrap exports from Ukraine have increased, leading to a shortage of this critical raw material for the national metallurgy. According to estimates from the industry association, in 2025, the shortage of scrap metal is expected to be around 200 thousand tons.
The economic impact of domestic processing of scrap metal into steel significantly exceeds export revenues: each ton processed within the country can bring 14,000–15,000 hryvnias to the state budget, while the export of raw materials yields only up to 100 hryvnias per ton.
The introduction of the zero quota is also aimed at combating so-called re-export schemes. Ukrainian scrap metal is often supplied to Poland and then redirected to third countries, including Turkey and India. As Kalenkov emphasized, direct exports are subject to a duty of 180 euros per ton, which encourages exporters to use EU countries, where a free trade regime is in place, for circumvention schemes.