The Federation of Metal Manufacturers of Ukraine has said that the Economic Development and Trade Ministry of Ukraine should revise the volume of exports of scrap ferrous metal for H2 2015 and limit exports due to the major shortage of scrap metal on the Ukrainian market and the threat of stoppage at some mining and metal companies.
The federation sent a letter, a copy of which has been forwarded to Interfax-Ukraine, to Economic Development and Trade Minister Aivaras Abromavicius on July 16.
Federation Chair Serhiy Bilenky presented the forecast of the Metallurgprom association of metal companies of Ukraine (Dnipropetrovsk), according to which steel smelting in 2015 would total 22.5 million tonnes. The demand of metal companies for scrap metal has been estimated at 4 million tonnes.
According to the letter, an acceptable volume of exports which would not harm domestic consumers this year would be 500.000 – 600.000 tonnes, in contrast to the 1.25 million tonnes which has been approved. Exports of scrap metal is regulated by Economic Development and Trade Ministry’s order № 381 of April 17, 2015, under which the exports limit for scrap metal was set at 1.25 million tonnes, which is the highest indicator for the past 10 years.
Sector experts said that the demand of metal companies for scrap metal in H1 2015 was 2 million tonnes. Scrap metal supplies to Ukrainian metal companies totaled less than 1.6 million tonnes and the shortage reached 436,000 tonnes, or 22 percent of the need.
Metal companies also asked the economy minister to take urgent measures to regulate the balance of the production and consumption of scrap metal in Ukraine in H2 2015.
