Restrictions on scrap exports are a prerequisite for the development of EAF capacities in Ukraine – Metinvest-Resource’s CEO

Metinvest Group plans to increase steel production by 300,000–500,000 tons this year, which will require an increase in scrap metal consumption. The company expects the Ukrainian scrap market to be in deficit in 2026. The lack of a long-term state policy on export restrictions will significantly reduce the likelihood of new electric steel melting capacities being built in Ukraine, which Metinvest is considering, among others. This was announced by Ivan Kovalevsky, CEO of Metinvest-Resource.

According to him, scrap metal is a strategic raw material, without which it is impossible to maintain steel production technology for both of Metinvest Group’s steel mills, Kametstal and Zaporizhstal. Metinvest is considering several options for modernizing the Group’s steel production facilities, the most promising of which is a shift to electric steel production.

«This option involves the commissioning of electric arc furnaces for steelmaking with a capacity of 3.5-3.8 million tons per year. Such furnaces require significantly more scrap metal than traditional converter steel production technology. If this project is implemented, scrap metal consumption in the domestic market will increase significantly,» said Ivan Kovalevsky.

The lack of a long-term policy to restrict scrap exports and maximize domestic processing of raw materials will significantly reduce the chances of building new electric steel smelting facilities in Ukraine.

“In the absence of sufficient quantities of the main raw material – scrap metal, which will be washed out of the domestic market of Ukraine in significant volumes every year, the implementation of such projects will become simply impossible,” emphasized the head of Metinvest-Resource.

As reported by GMK Center, on December 31, the government set zero export quotas for 2026 on the export of ferrous metal scrap (code 7204) and copper scrap (code 7404 00) from Ukraine. One of the tasks of the Verkhovna Rada for the current year is to enshrine the decision to restrict the export of strategic raw materials in law.

It should be noted that the volume of ferrous metal scrap procurement in Ukraine in 2024 increased by 37% year-on-year and amounted to over 1.7 million tons. Scrap deliveries to steel enterprises amounted to 1.34 million tons (a 30% increase year-on-year). In the first 11 months of 2025, procurement increased by 17.3% y/y – to 1.88 million tons, and supplies to consumers increased by 14.2% y/y – to 1.4 million tons.