10:42 23.02.2021

Metallurgists in favor of prolongation, tightening of restrictions on scrap export up to its complete ban

2 min read
Metallurgists in favor of prolongation, tightening of restrictions on scrap export up to its complete ban

Ukrainian metallurgical enterprises are in favor of prolonging the export duty on ferrous scrap in the amount of EUR 58 per tonne for another five years, or even tightening restrictions on the export of scrap metal up to its complete ban to normalize the situation with the provision of this raw material to domestic enterprises.

Such opinions and proposals were expressed at a meeting on the functioning of metallurgical enterprises and their provision with scrap metal, which was held on Friday at the Verkhovna Rada Committee on Economic Development, organized at the initiative of the Ukrmetalurgprom association.

Anticipating the discussion, Deputy Chairman of the Parliamentary Committee on Economic Development Dmytro Kysylevsky stated that the mining and metallurgical complex generates a fifth of the country's GDP, 200,000 Ukrainians work in the industry, and in the event of destabilization of the situation in the mining and metallurgical complex, about 1 million citizens of the country will directly feel this, and each Ukrainian - due to a decrease in budget revenues and the exchange rate, as well as due to other problems associated with the unstable operation of this industry.

Leading expert at Center for Market Economy Development (CMD-Ukraine) Ihor Huzhva presented research on the relative effect of the export duty on scrap metal. According to him, the export duty helped save 30,000 jobs and create 4,200 new jobs.

At the same time, the consumption of scrap metal reduces carbon dioxide emissions, as well as the use of iron ore, coal and electricity.

"In turn, a reduction in the duty to EUR 10 per tonne means 25,000 jobs less, shortfall in budget receipts, and if there is no raw material, there will be no investment. That is, from an economic point of view, it is recommended to prolong the duties," Huzhva said.

Representative of Dniprospetsstal Stanislav Cherednichenko spoke unequivocally in favor of extending the existing duty of EUR 58 per tonne for another five years, since it depends on whether the enterprise will operate, especially given the difficulties in selling products due to restrictions on the markets of other countries. At the same time, he stressed that Kazakhstan completely banned the export of scrap metal, protecting its market.

Procurement Director at Mariupol Illich Iron and Steel Works Oleksandr Zaichenko said that the use of scrap in metallurgical production reduces environmental pollution and also increases energy efficiency.

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