Scrap collection in Ukraine in November increased by 17% m/m

By the end of the year, Ukrainian steelmakers will need 1.9 million tons of scrap

Scrap collection volumes in Ukraine in November 2023 increased by 17% compared to the previous month – up to 134.6 thousand tons. The figure increased 12.5 times compared to November 2022. This is evidenced by data from the Ukrainian Association of Secondary Metals (UAVtormet).

Exports of scrap in November 2023 amounted to 14.1 thousand tons, which is 10.8% less compared to October 2023. Scrap shipments abroad increased 3.3 times compared to November 2022.

Scrap supplies to Ukrainian steel enterprises in November 2023 increased by 21.6% compared to the previous month and by 2.8 times compared to November 2022 – up to 114.1 thousand tons.

In January-November 2023, scrap collection increased by 27.3% compared to the same period in 2022 – to 1.13 million tons. Over 11 months, scrap supplies to Ukrainian steel mills increased by 8.2% y/y – to 910.9 thousand tons.

Exports of raw materials during this period amounted to 161 thousand tons, up 3.8 times y/y, while imports amounted to 0.9 thousand tons (-60.9% y/y).

UAVtormet predicts that scrap procurement in Ukraine will reach 1.25-1.3 million tons in 2023. Domestic supplies of raw materials to steel mills will be at 1-1.05 million tons.

Ferrous scrap collection has been and remains an important factor in the Ukrainian steel industry. Russia’s military aggression against Ukraine has had a major impact on the operations of domestic steelmaking companies and related industries.

According to Ukrmetalurgprom’s estimates, in 2023, the company plans to produce about 6.2 million tons of steel, which will require 1.9 million tons of imported scrap. At the same time, UAVtormet expects the level of raw material supplies to steel mills to be much lower (1-1.05 million tons). At the same time, exports of strategically important raw materials are growing significantly. This may result in a total scrap deficit of 780 thousand tons by the end of the year.

Most developed countries are in favor of a ban on scrap exports to preserve critical raw materials in the context of the development of green metallurgy. 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 metal will ensure the long-term competitiveness of European steelmakers and help avoid an increase in carbon emissions.

As GMK Center reported earlier, inf 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.