Ukrainian export of scrap metal experienced a real “boom” after the lull of the war year of 2022. According to the results of 2024, export volumes increased by 60% compared to the previous year and reached almost 293 thousand tons. This result is part of a large-scale market recovery.
Success became possible thanks to active deliveries to EU countries, which replaced the traditional Turkish market. Thus, in Poland, the volume of Ukrainian scrap imports increased from 160,000 tons to almost 250,000 tons in just one year. Polish metallurgists, who initially reduced production, finally increased steel production by more than 10% in 2024.
It is interesting that Turkey used to be the main buyer of Ukrainian scrap metal. But after 2022, the geography of supplies changed radically: direct supplies stopped, instead, Poland became a key partner. And the Poles themselves are now actively supplying scrap metal to Turkey, and the volume of their exports has more than doubled over the past two years.
All this is happening against the background of big changes in the industry. In 2021, Ukraine raised customs duties on scrap metal exports to support its steel mills. However, the war changed the situation: some enterprises were under occupation, and the market was forced to adapt to new conditions.
Currently, Ukrainian metallurgy is gradually recovering, and exporters are finding new opportunities. Europe has become the main consumer of our scrap metal, and this is another important step towards the integration of Ukraine into the European economy.
Infographic: IA “FACT”
Why was the year 2022 a failure for the export of scrap metal?
War and occupation are the key reason for the decrease in scrap export volume. The full-scale invasion of Russia led to the loss of control over a large part of the industrial regions, where enterprises engaged in the collection and processing of scrap metal were located. Many companies found themselves under occupation or in active combat zones, which caused significant logistical problems. The destruction of the transport infrastructure made it difficult to transport raw materials both within the country and abroad. Seaports—the main route for scrap exports—were blocked. At the same time, metallurgical enterprises that remained in the territory controlled by Ukraine needed scrap for their own production. Accordingly, export restrictions became even more justified. The market reacted with an active restructuring. Enterprises were forced to look for new logistics routes and sales markets, adapting to new conditions. It required time and resources. Already in 2023, the situation began to gradually stabilize — companies adapted to the conditions of the war, and exports increased significantly thanks to the redirection of supplies to the European Union.
Infographic: IA “FACT”
Currently without the Turkish market
Turkey has traditionally been the main buyer of Ukrainian scrap metal for the following reasons: it is among the top 10 global steel producers. The Turkish steel industry is critically dependent on the import of scrap, because the country’s own reserves of raw materials are very small. As you know, scrap metal is the basis for the production of steel using electrometallurgical technology, which is very popular there.
Logistical proximity also played a role: Ukraine is located nearby, and the Black Sea allowed raw materials to be transported quickly and relatively cheaply. This gave us a competitive advantage over more distant suppliers.
Infographic: IA “FACT”
Until 2022, Turkey was buying a significant part of Ukrainian scrap, but due to the war, supplies stopped. Instead, Turkish metallurgists began to cooperate more actively with Poland and other European countries.
The export of Ukrainian scrap metal to Europe has its own detours that affect both the Ukrainian budget and domestic metallurgy. The president of the association “Ukrmetalurgprom” Oleksandr Kalenkov earlier explained, that due to high duties, the direct export of scrap to Turkey is economically unprofitable — the duty is €180 per ton. Instead, the companies found a workaround: first they export raw materials to the European Union, where the duty is a symbolic €3 per ton or is zero at all, and from there they ship it to Turkey, which is one of the key consumers of scrap.
This scheme causes significant financial losses to Ukraine. According to Kalenkov, the budget has already received more than UAH 350 million shortfall. The problem is aggravated by the fact that supplies to the EU are currently not subject to export duties at all, which opens up wide opportunities for re-export of raw materials outside the European Union.
For the Ukrainian metallurgical industry, this is not just a financial issue, but a matter of survival. In the conditions of war and complicated collection of scrap metal, a stable supply of raw materials becomes critically important. Mass export of scrap abroad undermines the ability of plants to increase steel production and implement their plans. The lack of effective regulation threatens even more problems for an industry already damaged by the war.
Raw materials for the metallurgical industry
Scrap metal is old or worn metal products that are no longer used, but can be melted down and used again. The metallurgical industry needs it. In particular, black metal scrap is the main raw material for the production of steel, which is used in construction, engineering and many other areas. Its processing allows to reduce energy consumption, reduce CO2 emissions and preserve natural resources. The amount of scrap metal directly depends on the volume of metal production in the country. If the production of steel or other metal products increases, so does the amount of waste that can become scrap. In Ukraine, for example, a significant part of the scrap is generated due to old metal structures, machinery or infrastructure that is decommissioned.
If the metallurgical industry is actively working and has the capacity to process scrap, then the volume of raw materials can be stable or even increase. Conversely, reductions in production capacity or disruptions to supply chains may reduce the amount of scrap on the market.
High demand for scrap metal can stimulate its collection and export, especially when metal prices are high. In countries where there is a high demand for metal for steel production, as in Turkey, scrap becomes an important resource.
