Ukrainian Scrap Association Calls for Resumption of Ferrous Scrap Exports

The Ukrainian Association of Secondary Metals (UAVtormet) has called on the Ukrainian government to lift its zero export quota for ferrous metal waste and scrap, arguing that weaker domestic demand has created a surplus in the market and changed the conditions that originally justified the restriction.

Ukraine extended its restrictions on ferrous scrap exports in January 2026 through the end of the year, maintaining a zero quota under customs code 7204. The measure was introduced to secure sufficient scrap supplies for domestic steelmakers during martial law.

UAVtormet said domestic steel mills have since reduced scrap purchases significantly. According to market participants cited by the association, some companies, including Interpipe Dneprovtormet and Metinvest Resource, have suspended scrap procurement altogether.

The association said there are currently no clear indications of a significant recovery in domestic scrap demand in the near term. As a result, scrap collection companies are facing growing inventories and weaker operating conditions.

UAVtormet argued that the export restriction is now contributing to the accumulation of scrap rather than supporting domestic steel production. It said lower collection volumes, site closures and job losses could weaken Ukraine’s scrap collection infrastructure and reduce tax revenues and foreign-currency earnings.

The association also warned that prolonged restrictions could damage the capacity of the domestic scrap industry. If steel production and the wider economy recover, insufficient collection infrastructure could create difficulties in securing scrap supplies for Ukrainian mills.

Against this backdrop, UAVtormet has asked the Cabinet of Ministers to amend the relevant regulation and cancel the zero quota for exports of ferrous waste and scrap classified under customs code 7204.

Source: SteelOrbis

SUNSHINE Spotlight: Ukraine’s scrap industry is urging the government to reopen ferrous scrap exports as weaker domestic mill demand leaves growing surplus stocks and puts collection infrastructure under pressure.