The record export of scrap metal from Ukraine to the EU is causing a deficit in the domestic market.

Ukrainian exporters of ferrous metal scrap in February 2023 delivered about 15,000 tons of raw materials to EU countries, which is a historic amount. Compared to January, Ukrainian exports jumped by 100%, said a market representative. According to experts, the acceleration is primarily because customs offices in Rivne, Lviv, and Lutsk are performing only cursory document checks related to the scrap’s origin. Ihor Guzhva, head of the CMD-Ukraine analytical center, believes that the current situation with scrap metal export will soon lead to a shortage of raw materials in the Ukrainian market. “In the spring, the scrap shortage may be 25%, which is a critical indicator for the survival of Ukrainian metallurgy,” he says.