---
title: "Export of steel scrap without duty lacks market grounds"
description: "There are no market grounds in Ukraine to lift the zero quota on steel scrap exports or introduce duty-free shipments, said Ukrmetallurgprom President Oleksandr Kalenkov."
date: 2026-10-29T08:40:35.840Z
lang: en
url: https://xab.info/en/posts/export-steel-scrap-without-duty-lacks-grounds
tags: [ukrmetallurgprom, steel-scrap, metallurgy, export-quota, ukraine-economy]
author: "Andrey Kosynko"
publisher: "XAB.info"
---

# Export of steel scrap without duty lacks market grounds

![Metal scrap being grabbed by a hydraulic crane against the background of a scrap pile and industrial buildings](https://xab.info/media/2026/10/29/eksport-stalnogo-loma-bez-poshliny-lishen-osnovaniy/eksport-stalnogo-loma-bez-poshliny-lishen-osnovaniy-1.webp)

## Key Points

- The zero quota on steel scrap exports must remain until real market data on surpluses appear.
- Domestic scrap processing brings the budget 13,000-15,000 UAH in taxes per ton compared to 50-100 UAH for export.
- Calls from scrap collectors to open borders are premature and hasty.
- The decision on future exports should be made by the relevant ministry based on an analysis for September-November.

Currently, there are no objective prerequisites in the Ukrainian economy to lift the zero quota on steel scrap exports or introduce duty-free shipments of this strategic raw material abroad. This was stated by Oleksandr Kalenkov, President of the Ukrmetallurgprom enterprise association, who emphasized the critical importance of preserving the raw material base for domestic metallurgical and foundry enterprises that continue to operate amidst ongoing Russian attacks.

### Need for Autumn Data Analysis

According to the head of Ukrmetallurgprom, to adequately assess the market situation, it is necessary to carefully compare the volumes of scrap collection over the three autumn months with the actual consumption volumes by Ukrainian plants and foundries. Only a detailed analysis of these figures will allow objective conclusions to be drawn regarding the possible presence or absence of raw material surpluses within the country. The period from September to November should serve as a time for gathering and comprehensively analyzing actual data, based on which a joint meeting at the relevant ministry is planned for December.

### Premature Calls by Scrap Collectors

The expert drew special attention to the activation of scrap collection business representatives who began demanding the opening of borders for raw material exports immediately after massive missile strikes on Ukrainian industrial facilities. According to Kalenkov's assessment, such calls are premature, as the situation at the plants and the future prospects of heavy industry require deep study. Critics of this approach note the haste of conclusions regarding the fate of Ukrainian metallurgy without waiting for a full analysis of the situation.

### Fiscal Effect of Domestic Processing

Maintaining strict restrictions on raw material exports, regulated by government resolution No. 1795, serves as a key tool to support the metallurgical industry during the war, resource shortages, and European decarbonization requirements. According to analytical data from specialized centers, domestic scrap processing provides the state budget with tax revenues ranging from 13,000 to 15,000 hryvnias for every ton of finished smelted products. At the same time, simple export of raw materials abroad brings the treasury only 50–100 hryvnias in taxes per ton, making such exports economically unfeasible for the state.

### Significance for the Stability of Ukrainian Industry

Maintaining the current regulatory regime and protecting the domestic scrap market directly affects the survival of Ukraine's key industrial chains in the long term. As industry associations note, the country cannot afford an uncontrolled outflow of raw materials to the detriment of its own producers, who provide jobs and significant tax deductions. Future export decisions will be made exclusively on the basis of transparent market data collected following the autumn operating period of the industry.

## Fact-Check & Sources

- [Экспорт лома без пошлины не имеет рыночных оснований: позиция "Укрметаллургпрома"](https://www.rbc.ua/ukr/news/eksport-bruhtu-mita-mae-rinkovih-pidstav-1793263093.html) - The article fully confirms Ukrmetallurgprom's position and Oleksandr Kalenkov's statements regarding the lack of market grounds for lifting the zero quota.

## FAQ

### Why do experts consider opening scrap exports premature?

Ukrmetallurgprom's position is based on the fact that the calls were made immediately after strikes on plants without assessing the real situation and industry prospects.

### What tax benefit does domestic raw material processing bring?

Domestic processing provides the state budget with 13,000-15,000 hryvnias of taxes for every ton of smelted products.

### When is the scrap quota issue planned to be reviewed?

The issue is planned to be submitted to a joint meeting at the relevant ministry in December after analyzing data for the three autumn months.