Posted on 18 Sep 2025
The uncontrolled export of ferrous scrap is one of the biggest problems facing the Ukrainian steel industry, says Metinvest chief operating officer Oleksandr Mironenko.
“While export volumes were only 4,000 tonnes/month at the beginning of the war, they have now risen to 50,000t,” he said at the recent Forbes Ukraine Industrialists' Forum. “This is a serious threat, as with every tonne of scrap exported, Ukraine loses approximately $800-900 in foreign exchange earnings. These funds could remain in the country's economy if the scrap metal were processed at Ukrainian steel enterprises and sent to the domestic market or exported as finished goods, creating new opportunities for the development of domestic producers."
This trend weakens not only the industry but also the country's financial stability, as domestic scrap recycling creates additional value, tax revenue, and jobs, he added.
In January-August, Ukraine exported 283,055t of scrap, up by 59.3% on-year (see Kallanish passim). Shipments went primarily to Poland (83.4%), as well as Greece (6.56%) and Italy (4.8%). Revenue increased 49.7% on-year to $85.4m.
In recent years, Poland has effectively become a transit point for Ukrainian scrap metal, which is then shipped to Turkey, circumventing Ukraine’s €180/tonne scrap export duty. Data shows that in 2024, Polish scrap metal exports to Turkey more than doubled, reaching 529,000t, up from 228,000t the previous year, and have nearly tripled since 2022.
Research by Ukraine’s GMK Center shows that ferrous scrap is gradually losing its status as an export commodity in the long term due to global trade barriers. Scrap is increasingly viewed as a strategic resource for green metallurgy and decarbonisation, leading countries to seek to conserve the raw material for domestic use.
According to Mironenko, the key factors holding back the restoration of Ukrainian steel industry in war conditions remain high electricity tariffs, a shortage of skilled labour, and complex logistics.
"Our enterprises have a personnel shortage of about 15-20%. I understand the need to increase tariffs, but such decisions must take into account the interests of large businesses, so that private companies don't compensate for the inefficiencies of state-owned enterprises. It's important to find compromises and work together to resolve this issue," he said during the forum.
Logistics constraints related to port blockages and difficulties at Ukraine’s western borders remain among the main challenges, increasing delivery costs and times, he added.
Source:Kallanish
