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For the third time, the railway operator is unable to sell a large amount of scrap due to a lack of buyers

Ukrzaliznytsia (UZ) successfully hold 4 auctions for the sale of scrap metal with a total weight of 1.2 thousand tons, earning UAH 5.75 million from the transactions. Initially, the railway operator planned to sell 32 lots of scrap – a total of 21.2 thousand tons for more than UAH 93.4 million. This is evidenced by the information on the relevant auctions in the system ProZorro.Sales.

28 out of 32 planned auctions did not take place due to insufficient number of participants. UZ failed to sell 19.97 thousand tons of scrap worth UAH 87.7 million. The average price per ton of scrap metal in the auctions that took place was UAH 4.54 thousand.

Successfully sold lots of UZ scrap at auctions September 20 in 2022

The lot numberWeight, tPrice, UAHBuyerPrice per ton, UAH
561Б32.9145 716.0Ukrmet-Invest LLC4429.1
526Б6.326 388.6Ukrmet-Invest LLC4188.7
536Б734.93 552 431.6Keramet-Kharkiv LLC4833.9
581Б430.62 028 405.8Novovtor LLC4710.6
Total1204.75 752 942.0

Data source: prozorro.sale

Among the sold scrap are types 26, 500, 506 and 505. These are worn parts of railcars, springs, beams and other scrap. Keramet-Kharkiv LLC bought the most secondary scrap – 734.9 tons for UAH 3.55 million.

All scrap lots have been put up for the third time, but Ukrzaliznytsia failed to realize them this time as well.

As GMK Center reported earlier, from the beginning of 2022 UZ sold 80.3 thousand tons of scrap metal for UAH 502.6 million. In total for the year, the railway operator planned to sell 170 thousand tons of scrap, including 13 thousand railcars.

In 2021, Ukrzaliznytsia sold 201.2 thousand tons of scrap ferrous metals with a total value of UAH 1.503 billion. This is 38.8% more in monetary terms and 2.6 times more than in kind compared to 2020.

During the year, UZ managed to hold 84 auctions out of 210 published. Among the main buyers of raw materials are:

  • Dniprostal – 28 lots (82.2 thousand tons for UAH 631.4 million);
  • Metinvest-Resources – 26 lots (80.8 thousand tons for UAH 592.2 million);
  • Ferolit – 16 lots (13.8 thousand tons for 112.2 million UAH).