Photo: Reuters
Ukrainian metallurgists are experiencing a shortage of scrap due to a sharp increase in its exports
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The Ukrainian leadership is calling for a ban on the export of scrap metal due to its shortage for industry and the loss of foreign exchange earnings.
The Federation of Employers of Ukraine warned the Ministry of Economy of an annual loss of about $ 1.4 billion in foreign exchange earnings, if a ban on the export of scrap metal is not introduced. This is stated in a letter from the FRU to the First Deputy Prime Minister, Minister of Economy Alexei Lyubchenko.
It is noted that in Ukraine it is impossible to smelt steel without scrap metal, but the volumes of its procurement are falling annually and, according to the results for 2020, reached a historical minimum – 2,900,000 tons.
The Federation cites customs data, according to which, in January-August 2021, the export of scrap increased by almost 20 times, and amounted to 410,000. Because of this, a deficit was formed in the domestic market and enterprises had to compensate for it at the expense of their own warehouse stocks. “However, already in August-September, the enterprises began to lose production volumes, and now the factories are forced to work literally” off the wheels, “the letter says.
It is recalled that a ton of exported scrap gives the state about UAH 1.8 thousand (the equivalent of a duty of 58 euros). While a ton of scrap processed into steel brings Ukraine 8.2 thousand hryvnyas in taxes.
“If you do not introduce a moratorium on the export of scrap metal, Ukraine will annually lose about UAH 20 billion in tax revenues, 5 million tons in steel production, 2.4% of Ukraine’s GDP and $ 1.4 billion in foreign exchange earnings,” the FRU warned.
They also noted that the budget is losing tens of millions of dollars, since the scrap collection industry is still a shady business, despite the adopted law on whitewashing the industry.
“Each ton of recycled scrap saves 1.5 tons of CO2 and 740 kg of coal, and also requires only 1/3 of the energy consumption compared to the production of steel from primary raw materials. to provide industrialists with raw materials for decarbonization, “the FRU noted.
That is why the Federation supported the introduction of a ban on the export of scrap, and called on the Ministry of Economy to promote its early adoption.
As you know, the Ministry of Economy has proposed to limit the export of scrap metal until 2024, with the exception of a few countries, but the resolution has not yet been adopted.
Earlier, metallurgists made an appeal prohibit the export of scrap to the president and the prime minister.
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