Ukraine: Scrap recyclers call for lifting of export ban, seek 200,000-t EU export quota instead

• Falling crude steel production in Ukraine reduces domestic scrap demand
  
  
• Domestic scrap trades nearly $200/t below EU prices, hurting recyclers' earnings
  
  

Ukraine's ferrous scrap recyclers have called on the government to lift the ban on scrap exports and instead introduce an annual 200,00-tonne (t) export quota for shipments to the European Union (EU), arguing that the current de facto export restrictions are hurting the domestic recycling industry. The proposal was presented during a press conference organised by the Ukrainian Association of Secondary Metals (UAVtormet).

Export restrictions weigh on domestic scrap market

Previously, the Ukrainian government had announced that it would extend restrictions on ferrous scrap exports until the end of 2026 by continuing a zero-quota licensing regime. The move aimed to ensure adequate scrap availability for domestic steelmakers and foundries and discourage transit exports generating limited value for the economy. The government had also highlighted that domestic scrap utilisation supports employment, tax revenues, lower emissions, and supplies critical materials for defence production and post-war reconstruction.

However, according to UAVtormet, the blanket scrap export restriction has had an adverse financial impact on recyclers, given the drop in scrap consumption in Ukraine. Ukraine's crude steel production declined 6% y-o-y during 5MCY'26, while ferrous scrap consumption fell 8% to 604,000 t. The association estimates the restrictions have resulted in around 60 million ($60 million) in lost foreign exchange earnings and lower tax revenues.

Domestic scrap prices have also weakened significantly. Ukrzaliznytsia sold scrap at around UAH 5,500/t ($123/t) this year compared with an average of UAH 8,500/t ($190/t) in 2025. Meanwhile, domestic suppliers were receiving around $160-165/t, while EU buyers offered nearly $360/t, leaving a price gap of about $200/t.

The weaker market has also forced recyclers to reduce operations. Ukrmet-Invest said it laid off 150 employees and sharply reduced scrap collection, while UKRMET Group closed two terminals, one port facility and ten collection sites following the effective halt in exports.

Industry proposes export quota as balanced solution

Industry representatives said allowing up to 200,000 t of annual scrap exports to the EU through a quota system would help revive scrap collection without disrupting domestic steelmakers' raw material supply. They also urged the government to review the country's scrap balance before introducing further policy or tax changes affecting the recycling sector.

Market participants expect discussions between the government and industry to continue in the coming months. If the proposed export quota is approved, it could improve scrap collection, strengthen export earnings, and support investment in the recycling sector, while maintaining sufficient domestic scrap availability for Ukraine's steel industry.