Scrap exports are economically unprofitable for the state – Metinvest’s COO

One of the challenges for the Ukrainian steel and mining industry is the shortage of scrap for the steel industry, which is exacerbated by the constant increase in exports of this strategically important raw material from the country. Metinvest Group’s Chief Operating Officer Olexander Myronenko said this at Business Wisdom Summit 2025.

He reminded that in 2024, scrap exports increased almost 6 times compared to 2022.

“We sell strategic raw materials abroad for $250 per ton, while steel is sold for $550-600,” said Mr. Myronenko.

According to estimates, the use of one ton of scrap for steel production and exports brings Ukraine an additional UAH 1.2 thousand in foreign exchange earnings and UAH 15 thousand in taxes.

“Exporting scrap is economically unprofitable for the state. We have to limit the export of scrap, which is necessary for Ukrainian steelmakers to increase domestic steel production,” said Metinvest’s COO.

Another problem for Ukrainian steelmakers is the tariffs for the services of natural state monopolies, whose inefficiency results in additional costs for businesses. Since 2021, the cost of electricity transmission has increased 2.3 times, gas transportation tariffs have quadrupled, and railway tariffs have increased 1.7-2.4 times.

The list of the most painful challenges for the group also includes a shortage of personnel, which is 10-15% of the total number of employees.

It is worth reminding that in the first quarter of this year, exports of scrap from Ukraine increased by 32% compared to the same period in 2024, up to 80.9 thousand tons. Compared to the previous quarter, the figure decreased by 10.9%.

Scrap exports from Ukraine increased by 60% y/y over the past year to 293.2 thousand tons. In 2023, shipments of raw materials abroad exceeded 182.5 thousand tons, up 3.4 times yoy, while in 2022 the figure was 54.1 thousand tons.