Parliament increases scrap export duty to €180/t

On 2 December, the parliament increased scrap export duty from €58/t to €180/t, according to the draft Law “On Amending Annexes 1 and 3 to the Law of Ukraine “On the State Budget of Ukraine for 2021”. Thus, the parliament has amended the Law No. 1419-IX on preventing scrap deficit in the domestic market.

242 MPs voted for the document.

Prior to that, the Ministry of Economy developed and submitted for consideration to the Cabinet of Ministers a draft law on increasing the export duty to €200/t. However, on 10 November, the Cabinet returned this document to the Ministry of Economy.

Since mid-year, steel producers have advocated a ban on scrap exports until 2023 to maintain sustainable operations of Ukrainian companies. In turn, associations of scrap collectors opposed the initiative. Specifically, UAVtormet insisted on an objective examination of the ban’s implications for the scrap collection market.

Over the past few years, Ukraine applied a scrap export duty of €58/t. In May 2021, President of Ukraine, Volodymyr Zelenskyi, signed the Law No. 1419-IX to extend the applicable scrap export duty for another five years, until 15 September 2026.

As reported earlier, scrap collection in 11M increased by 36.6% to 3.78 million tons y-o-y. Scrap exports in 11M totaled 547.5 thousand tons, while over the same period last year, only 33 thousand tons were exported.