The supply of raw materials to steel companies decreased by 22.9% m/m
In January 2024, scrap collection in Ukraine decreased by 21% compared to the previous month – to 118.3 thousand tons. Compared to January 2023, the number increased by 95.5%, mainly due to the low comparison base. This is evidenced by data from the Ukrainian Association of Secondary Metals (UAVtormet).
Scrap exports in January this year totaled 17.2 thousand tons, a value 20% lower than in December 2023. Scrap shipments abroad increased 2.1 times compared to January last year. Imports of raw materials in the month totaled 0.13 thousand tons, a drop of 35% m/m.
The supply of scrap to Ukrainian ыеууд enterprises in January decreased by 22.9% compared to the previous month and increased by 93.3% compared to January 2023 – to 95.5 thousand tons.
UAVtormet predicts that scrap collection in Ukraine will reach 1.5-1.7 million tons in 2024. Domestic supply of raw materials to steel mills will be 1.2-1.4 million tons. Exports will reach 250-300 thousand tons.
As previously reported by , in 2023, scrap collection in Ukraine increased by 28.1% – to 1.27 million tons compared to 2022. In the same period, scrap supplies to steel mills amounted to 1.034 million tons (+15 .4% y/y). Exports increased 3.4 times compared to 2022, to 182.48 thousand tons.
Scrap is a strategic raw material for the global steel industry to achieve its carbon neutrality goals. Most developed countries are in favor of banning scrap exports to preserve essential raw materials in the context of the green steel industry. The European Union could go from exporter to importer of steel scrap in less than 5 years as global steel producers switch to electric arc furnaces, so competition for this raw material will only intensify.
In particular, EUROFEER advocates for the EU to include scrap in the list of critical raw materials, as only equal access to scrap will guarantee the long-term competitiveness of European steel producers and prevent an increase in carbon emissions.
