Scrap collection in Ukraine decreased by 21% m/m in January

The supply of raw materials to steel enterprises decreased by 22.9% m/m

In January 2024, scrap collection in Ukraine decreased by 21% compared to the previous month – to 118.3 thousand tons. Compared to January 2023, the figure increased by 95.5%, mainly due to a low comparison base. This is evidenced by data from the Ukrainian Association of Secondary Metals (UAVtormet).

Exports of scrap in January this year amounted to 17.2 thousand tons, which is 20% less than in December 2023. Scrap shipments abroad increased by 2.1 times compared to January last year. Imports of raw materials for the month amounted to 0.13 thousand tons, down 35% m/m.

Scrap supplies to Ukrainian ыеууд enterprises in January decreased by 22.9% compared to the previous month and increased by 93.3% compared to January 2023 – to 95.5 thousand tons.

UAVtormet predicts that scrap collection in Ukraine will reach 1.5-1.7 million tons in 2024. Domestic supplies of raw materials to steel mills will be at 1.2-1.4 million tons. Exports will reach 250-300 thousand tons.

As GMK Center reported earlier, in 2023, scrap collection in Ukraine increased by 28.1% – to 1.27 million tons compared to 2022. Over the same period, scrap supplies to steelmakers amounted to 1.034 million tons (+15.4% y/y). Exports increased 3.4 times compared to 2022, to 182.48 thousand tons.

Scrap is a strategic raw material for the global steel industry to achieve its carbon neutrality goals. Most developed countries are in favor of a ban on scrap exports to preserve critical raw materials in the context of green steel industry. The European Union may turn from an exporter to an importer of steel scrap in less than 5 years, as global steelmakers switch to electric arc furnaces, so the competition for this raw material will only intensify.

In particular, EUROFEER advocates for the EU to include scrap in the list of critical raw materials, as only equal access to scrap will ensure the long-term competitiveness of European steelmakers and avoid an increase in carbon emissions.