Ukraine Restricts Scrap Metal Export: Why This Matters for the Economy.
Ensuring Raw Materials During War
According to ТСН: Domestic consumers of scrap metal must have priority in access to raw materials, especially during wartime. This was emphasized by the deputy director of the State Enterprise 'Ukrpromzovnishexpertiza', Sergey Povazhnyuk, while analyzing the situation in the scrap metal market in Ukraine.
'Recycling scrap metal provides a multiplier effect for the entire economy, as it stimulates growth in related industries, such as the production of iron ore raw materials, coke, and ferroalloys. All of this needs to be transported within the country, meaning that the transport sector receives additional loads. In addition to revenue for the budget, metallurgical plants provide tens of thousands of official jobs both directly and in related enterprises,' noted the expert.
Prospects for Steel Production
Povazhnyuk also pointed out that if the plans of metallurgical plants are successfully implemented, growth in production could become a challenge due to a possible deficit of scrap metal. By 2026, the plants intend to increase the production of liquid steel to 8.9 million tons.
According to estimates from the State Enterprise 'Ukrzovnishexpertiza', steel production in 2025 is expected to be around 7.6 million tons.
The situation in the scrap metal and steel market is crucial for the economy of Ukraine, especially in wartime conditions. Ensuring domestic consumers with raw materials will not only support the metallurgical sector but also create new jobs, which is critically important in the current circumstances. The planned growth in steel production could serve as a serious economic stimulus, but it requires adequate provision of scrap metal.
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