Ukrainian Railways plans to hold the first scrap auction in May

After a pause of almost two years, Ukrainian Railways JSC (UZ) intends to put up lots of scrap metal in the Prozorro. Sale system. This was announced at a meeting with potential buyers of raw materials by Yevhen Shramko, a member of the company’s board, Interfax-Ukraine reports.

According to him, at the first stage, UZ plans to sell about 70 thousand tons of scrap. According to the presentation at the meeting, the total amount of available scrap available for sale is 159.5 thousand tons.

“If everything goes according to plan, in mid-May you will see the first lots in Prozorro. Sale… We are aiming for May 15,” Shramko said.

As GMK Center reported earlier, in early April the government allowed the company to independently decide on the disposal of property if its book value does not exceed UAH 500 million. This, among other things, gives UZ the opportunity to start selling the accumulated scrap and crushed stone products.

The Ministry of Communities and Territories Development reported that Ukrainian Railways, in particular, will be able to sell more than 218.6 thousand tons of ferrous scrap (for UAH 1.6 billion) and 3.8 thousand tons of non-ferrous scrap (for UAH 233.4 million).

The procedure for alienation of UZ’s property by decision of the company’s board was canceled in September 2023. The sale of property, including scrap metal, and lease of property had to be approved by the government. In December 2023, Ukrzaliznytsia initiated changes to the resolution.

As GMK Center reported earlier, Ukrainian Railways has not sold scrap to the domestic market of Ukraine via auctions in the Prozorro.Sale system for more than 1.5 years. The last time the raw materials were put up for auction was in September 2023.

As UZ is the largest state-owned company generating scrap, with annual sales of around 10-13% of domestic consumption, the prolonged lack of sales poses a real threat to the Ukrainian steel industry. In 2023, the company sold only 76.4 thousand tons of this raw material, while in 2022 it sold 113 thousand tons against the target of 170 thousand tons.