Scrap collection in Ukraine decreased by 46% m/m in May

In May 2023, the volume of scrap collection in Ukraine decreased by 46% compared to the previous month – to 77.7 thousand tons. Compared to May 2022, the indicator increased by 62.6%. The data of Ukrainian Association of Secondary Metals (UAVtormet) reports about it.

Export of scrap for May 2023 amounted to 21.1 thousand tons, which is 31.1% more compared to April 2023. Compared to May 2022, scrap shipments abroad increased by 16.6%.

Scrap supplies to Ukrainian steel enterprises in May 2023 decreased by 37.8% compared to the previous month and increased by 42.2% by May 2022 – to 52.9 thousand tons.

In January-May 2023, the collection of scrap decreased by 33.5% compared to the same period in 2022 – to 444.3 thousand tons. The export of raw materials during this period amounted to 77.5 thousand tons, which is 3.1 times more y/y, and import – 0.03 thousand tons (-70% y/y).

Scrap supplies to Ukrainian steel plants for January-May 2023 decreased by 44.3% y/y – to 345.7 thousand tons.

Technological stocks of scrap at industrial enterprises are estimated at 25-30 thousand tons as of June 1, 2023. Estimated technological needs of steelmakers in scrap are fully provided, with an excess of 12.5%.

UAVtormet predicts that scrap collection in Ukraine will amount to 1.2-1.25 million tons in 2023. Domestic supplies of raw materials to steel mills will be at the level of 950,000-1 million tons.

«During January-May 2023, the volume of scrap collection in Ukraine continued to decrease. This trend is due to crisis phenomena in the Ukrainian collection industry and the surplus of material on the market. The shutdown of some enterprises in June due to the consequences of the destruction of the Kakhovska HPP will lead to a further reduction in steel production,» the message says.

As GMK Center reported earlier, in 2022 volumes of scrap collection in Ukraine decreased by 75.9% compared to 2021 – to 996.7 thousand tons. The export of raw materials for the year decreased by 11.4 times y/y – to 53.6 thousand tons, import – 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.

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Published by
Masha Malonog
Tags: scrap UAVtormet scrap import scrap export collection of scrap
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