Ukrainian Scrap Metal Export

by Olha Povaliaieva
Thursday, February 17, 2022
Ukrainian Scrap Metal Export

How the new trade regime of Ukraine and Turkey affects the steel industry

In early February, the countries signed a document that had been adjusted for more than 10 years to meet diplomatic requirements. Ukraine and Turkey have concluded a trade agreement. It has increased import and export opportunities for both countries. It included changes in the conditions of cooperation in the metal industry.

A scrap of ferrous metals is not the most expensive but the most sensitive position for domestic steel in the export list. According to last year's results, about 615 thousand tons of scrap were removed from Ukraine. This is almost 20 times more than in 2020. Eighty-five percent of this production was destined for Turkey.

The agreement made the Ukrainian developer think about the production capacity. Indeed, Turkey always has a demand for the metal, and its export is growing every year. It means that Turkey alone can export all of Ukraine's steel.

Ukraine could be left without metal raw materials, but that would not happen. The Ukraine Ministry of economic affairs has managed to maintain the export rate. So, steel is not in a free trade zone. It gives Kyiv the right to limit its exports using barriers.

Such a move allowed for the maintenance of friendly relations with Turkey, the sale of metals to other countries, and the maintenance of the stability of the" rel="false">metallurgical production.

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