Collection of scrap in Ukraine doubled m/m in April

In April 2023, the volume of scrap collection in Ukraine increased by 2.04 times compared to the previous month – up to 144 thousand tons. Compared to April 2022, the figure increased by 2.3 times. It is stated by Ukrainian Association of Secondary Metals (UAVtormet).

Export of scrap in April 2023 amounted to 16.1 thousand tons, which is 3.9% more compared to March 2023. Imports of raw materials for this period amounted to 0.01 thousand tons, which is equal to the previous month. In April 2022, scrap was neither exported nor imported.

The supply of scrap to Ukrainian steel enterprises in April 2023 decreased by 2.7% compared to the previous month and increased by 62.1% by April 2022 – to 85.1 thousand tons.

In January-April 2023, the collection of scrap decreased by 40.8% compared to the same period in 2022 – to 366.6 thousand tons. The export of raw materials for this period amounted to 56.4 thousand tons, which is 7.9 times more y/y, and imports – 0.06 thousand tons (-40% y/y).

The supply of scrap to Ukrainian steel plants in January-April 2023 decreased by 49.8% y/y – to 292.8 thousand tons.

Technological stocks of scrap at steel enterprises are estimated at 20-25 thousand tons as of May 1, 2023. The estimated technological needs of steelmakers in scrap are fully met, with a slight excess.

UAvtormet predicts that scrap collection in Ukraine in 2023 will amount to 1.1-1.2 million tons. Domestic supplies of raw materials to steel plants will be at the level of 950 thousand – 1 million tons.

“During January-April 2023, the volume of scrap collection in Ukraine continued to decline – about 366.6 thousand tons of scrap were collected. This trend is due to the crisis in the Ukrainian collecting industry and a surplus of material on the market,” the report says.

As GMK Center reported earlier, in 2022 scrap volumes in Ukraine decreased by 75.9% compared to 2021 – to 996.7 thousand tons. Raw material exports decreased by 11.4 times y/y over the year – to 53.6 thousand tons, imports – by 92.1% y/y, to 1.8 thousand tons. Domestic supplies of raw materials to domestic steel mills decreased by 73% – to 895.7 thousand tons.