Ukrainian Scrap Metal Exports Surge Ninefold, Posing a Major Threat to Domestic Steel Industry.

Sharp Increase in Scrap Metal Exports

According to TSN.ua: Oleksandr Kalenkov, President of the Ukrainian Metallurgists' Association (Ukrmetallurgprom), has reported a dramatic rise in scrap metal exports from Ukraine and outlined sectoral challenges, including consultations with the European Commission on potential export restrictions. According to the data, exports skyrocketed from 50,000 tons in 2022 to 450,000 tons in 2025. Despite this massive outflow, Ukraine itself is projected to face a domestic scrap metal deficit of 200,000 tons in 2025. This situation highlights a critical imbalance where raw materials are being sold abroad while local factories struggle to source them.

Kalenkov noted that the increased exports resulted in Ukrainian steel enterprises missing out on approximately $700 million in foreign currency revenue in 2025.

"The losses to the state from the growth in scrap exports are obvious," he stated.

This underscores that despite the export boom, internal industrial demands are being severely neglected, harming the national economy.

Critical Shortages in Domestic Supply

In 2024, Ukraine supplied 350,000 tons of scrap to Poland, a country whose own scrap market is nearly 7 million tons. Furthermore, Poland itself exported around 3 million tons of metal scrap that year.

"Ukrainian enterprises received less scrap than they needed," Kalenkov emphasized.

This points to a severe supply chain failure within Ukraine, necessitating urgent policy solutions.

Oleksandr Kalenkov also reported on ongoing consultations with the European Commission, remarking:

"The consultations were conducted openly, everyone was informed, and at the level of Brussels and the European Commission, we found understanding on this issue."

This indicates that international cooperation is being sought to manage a problem that affects both Ukraine's industrial base and broader European trade flows. The Ukrainian steel sector, a traditional pillar of the economy, requires stable raw material supplies to recover and compete.

Therefore, while the export growth is significant, it is equally crucial to secure the raw material needs of Ukraine's own metallurgical industry to prevent further economic damage. Under current deficit conditions, Ukrainian businesses risk substantial financial losses, demanding an immediate response from both the state and the private sector to balance domestic and external demands. Collaboration with international partners, particularly the European Commission, could prove vital in resolving these complex challenges.