Ukrainian Railways put up for sale 18,000 tons of scrap metal worth UAH 121 million

Ukrainian Railways JSC (UZ) has put up for sale 51 lots of ferrous metal scrap on the Prozorro.Sale platform. The total initial cost of the raw materials is UAH 120.57 million, and their weight is 18.29 thousand tons.

The auctions are scheduled for December 12, 18, and 19, 2025. Twenty lots with a total value of UAH 42.3 million will be auctioned on December 12, 29 lots (UAH 70.5 million) on December 18, and two lots (UAH 7.8 million) on December 19. The average cost per ton of scrap metal was UAH 7.77 million, while the lowest bid was UAH 5,000/ton and the highest was UAH 12.97 thousand/ton.

The auction will take the form of a three-round English auction. The deposit for participation is 10% of the starting price. The loading price is UAH 706/ton.

It should be noted that the scrap metal market in Ukraine is experiencing a systemic crisis: raw material procurement has fallen threefold due to the war, and a significant part of it is additionally «washed out» by exports. In such conditions, Ukrainian Railways’ scrap metal is of strategic importance for steel enterprises.

Before the war, UZ accounted for approximately 10-15% of nominal sales on Prozorro, although actual deliveries accounted for only up to 6% of the market. At the same time, following a legal dispute in the fall of 2023, the company suspended auctions for a year and a half, which further exacerbated the shortage of raw materials.

The resumption of trading in 2025 took place against the backdrop of a deterioration in the financial condition of UZ. The government was forced to urgently allocate more than UAH 4.3 billion to the railway operator for salary payments, and the sale of scrap metal became one of the main internal sources of revenue.

Although Ukrainian Railways had accumulated large stocks of scrap metal — more than 95,000 tons ready for sale and up to 131,000 tons in the future — actual shipments in June-August fell to 10,000 tons, the lowest level in seven years. This was due to systemic problems in the organization of auctions, pricing, and conditions for the sale of raw materials. To resolve differences with market participants, Ukrzaliznytsia held a meeting to gather proposals and complaints, which may improve activity and sales of raw materials in the future.

Currently, as noted by the railway operator, the starting price is based on an analysis of previous auctions in the Prozorro.Sale system, as well as data from the state-owned enterprise Ukrpromzovnishchexpertiza. In addition, the tariff for loading scrap metal has been changed to UAH 706/t (including VAT), which should reduce buyers’ operating costs and make participation in tenders more attractive.