Exclusive Ukrainian Railways successfully held 7 auctions for the sale of scrap for UAH 13 million

In total, the series of auctions consisted of 33 lots, some of which could not be held due to insufficient number of participants

On June 5, 2025, JSC Ukrainian Railways (UZ) successfully held 7 auctions for the sale of ferrous scrap on the Prozorro.Sale platform. The next step is to sign the protocol by the winners and conclude an agreement with the organizer.

The total volume of raw materials sold is 1.66 thousand tons, and the value of the transactions is UAH 12.96 million. At the same time, the initial value of these lots was UAH 11.85 million, increasing by UAH 1.1 million during the bidding process. The average cost of a ton of raw materials is estimated at UAH 7.79 thousand, with prices ranging from UAH 6 thousand to UAH 9 thousand depending on the lot.

The winners include Zakhidtekhnomedbud (3 lots worth UAH 5.65 million), Lyon Agro (2 lots worth UAH 4.15 million), NDMZ (1 lot worth UAH 1.24 million), and Ukrbutbrukht (1 lot worth UAH 1.92 million). The most expensive type of scrap was railway wheelset axles (Type 3), with offers per ton of raw material reaching UAH 8.95-9 thousand.

In total, the series of auctions scheduled for June 5, 2025, involved the sale of 33 lots of scrap. However, most of the auctions failed due to insufficient bidders. This is the second time UZ has tried to hold these auctions, but participants are not encouraged to participate, probably due to the inflated price. In particular, the last auction in 2023, which was followed by a long break in trade by UZ, was held at a price of 5.1-6.5 thousand UAH/t (6.35 thousand UAH/t on average from 53 lots). Thus, the most valuable type of scrap (Type 3) went up by more than 2 thousand UAH/t.

As GMK Center reported earlier, Ukrzaliznytsia resumed trading in scrap on May 16 this year. Prior to that, the company had not sold raw materials since September 2023. In the first 9 months of that year, the railway operator sold only 76.4 kt of scrap, compared to 113 kt in 2022, when it was supposed to sell 170 kt.

Recently, the Cabinet of Ministers simplified the procedure for disposing of property for Ukrainian Railways, according to which the company can independently, without government approval, decide on the disposal of property if its book value does not exceed UAH 500 million.

This decision is expected to allow UZ to receive over 218.6 thousand tons of ferrous scrap (worth UAH 1.6 billion) and 3.8 thousand tons of non-ferrous scrap (worth UAH 233.4 million).