Scrap collection in Ukraine increased by 12% m/m in June

In June 2023, the volume of scrap collection in Ukraine increased by 11.6% compared to the previous month – up to 86.7 thousand tons. Compared to June 2022, the figure increased by 2.06 times. Ukrainian Association of Secondary Metals (UAVtormet) reports about it.

Export of scrap in June 2023 amounted to 14.5 thousand tons, which is 31.3% less compared to May 2023. Compared to June 2022, shipments of scrap abroad increased by 4.1 times.

The supply of scrap to Ukrainian steel enterprises in June 2023 increased by 28.7% compared to the previous month and by 76% by June 2022 – up to 68.1 thousand tons.

In January-June 2023, scrap collection decreased by 25.2% compared to the same period in 2022 – to 531 thousand tons. The export of raw materials for this period amounted to 92 thousand tons, which is 3.2 times more y/y and imports – 0.5 thousand tons (-68.8% y/y).

The supply of scrap to Ukrainian steel plants in January-June 2023 decreased by 37.2% y/y – to 413.8 thousand tons.

Technological stocks of scrap at steel enterprises are estimated at 15-20 thousand tons as of July 1, 2023. The estimated technological needs of steelmakers in ferrous metal scrap are fully met, with an excess of 12.5%.

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

“During the first half of 2023, the volume of scrap collection in Ukraine continued to decline – about 531.0 thousand tons of ferrous scrap were collected. This trend is due to the crisis in the Ukrainian collecting industry, a surplus of material on the market and other factors,” the report says.

As GMK Center reported earlier, scrap metal volumes in Ukraine in 2022 decreased by 75.9% compared to 2021 – to 996.7 thousand tons. Raw material exports decreased by 11.4 times y/y over the year – to 53.6 thousand tons, imports – 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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