---
title: "Metallurgists Demand Equal Rules: Ukrmetallurgprom Asks Ministry of Economy Not to Create Exceptions for State Companies in Scrap Sales"
description: "Ukrmetallurgprom has appealed to the Ministry of Economy demanding uniform rules for scrap metal sales for all market participants and opposing a separate export mechanism for Ukrzaliznytsia. Metallurgists are ready to buy up to 95% of volumes domestically."
date: 2026-11-02T12:15:36.641Z
lang: en
url: https://xab.info/en/posts/ukrmetallurgprom-minekonomiki-scrap-equal-rules
tags: [scrap-metal, ukraine, metallurgy, ukrmetallurgprom, ukrzaliznytsia, export-quota, auctions, ministry-of-economy]
author: "Darya Fomina"
publisher: "XAB.info"
---

# Metallurgists Demand Equal Rules: Ukrmetallurgprom Asks Ministry of Economy Not to Create Exceptions for State Companies in Scrap Sales

![Black container with scrap metal and inscription Metainv scrap in a warehouse](https://xab.info/media/2026/11/02/ukrmetallurgprom-minekonomiki-metallom-ravnye-pravila/ukrmetallurgprom-minekonomiki-metallom-ravnye-pravila-1.webp)

## Key Points

- Ukrmetallurgprom demands uniform scrap sales rules from the Ministry of Economy for state and private companies without exceptions
- The industry is ready to buy 65–70% of Ukrzaliznytsia scrap volumes domestically, up to 90–95% after full recovery
- At a starting price of 80 EUR/ton, the budget will receive ~16 million EUR; with a zero price, trader superprofits will reach 22.6 million EUR
- GMK Center warns of the risk of returning 'gray' schemes bypassing the 180 EUR/ton duty via the EU and Turkey

The Ukrmetallurgprom association has sent an appeal to the Ministry of Economy and Environmental Protection of Ukraine asking to regulate the mechanism for selling scrap metal by state-owned enterprises and ensure transparent, equal rules for all market participants. According to RBC-Ukraine, the letter is addressed to Minister of Economy Oleksandr Kravchenko. In the document, the metallurgical industry insists that when introducing scrap sales auctions, exceptional conditions should not be created for state-owned companies, and the starting price of lots should be formed on a market basis.

### Against a Separate Export Mechanism for Ukrzaliznytsia

The appeal emphasizes that Ukrzaliznytsia's scrap metal is an important source of strategic raw materials for Ukrainian metallurgy. The industry believes that the maximum volume of such scrap should be sold and processed domestically, as this ensures employment, tax revenues, and the production of high-value-added products. This is why Ukrmetallurgprom opposed the possible creation of a separate scrap export mechanism for state-owned companies. According to the association, such exceptions could create unequal competitive conditions, risks of abuse and shadow schemes, as well as lead to direct losses for the state budget. The document states explicitly: "Any exceptions for state companies are opportunities for schemes and direct budget losses. Equal rules for everyone eliminate this risk."

### Readiness to Buy 65–95% of Volumes on the Domestic Market

Metallurgists have stated their readiness to actively purchase Ukrzaliznytsia's scrap metal on the domestic market. According to Ukrmetallurgprom, Metinvest and Interpipe are already ready to buy at least 65–70% of the volumes put up for auction, provided that the starting price is formed on market terms. After the full resumption of metallurgical enterprises, this share, according to the association's estimates, may increase to 90–95%. Thus, the industry proposes approving a clear plan for the sale of Ukrzaliznytsia scrap for 2027 specifically on the domestic market, abandoning draft decisions that provide for the abolition of the zero quota on scrap exports for state-owned enterprises in November–December 2026 and further from 2027.

### Financial Mathematics: 16 Million Euros vs. 22.6 Million in Trader Superprofits

The letter provides specific calculations. According to the association's estimates, with a zero starting price at the export quota auction, potential superprofits of exporters could reach 22.6 million euros, while the budget would receive nothing from the quota sale. At a starting price of 80 euros per ton, the budget will receive about 16 million euros with a quota of 200 thousand tons, and export will remain profitable for traders. The principles of possible auctions for export quotas, UMP is convinced, must also be market-driven — the starting price should be at least 80 euros per ton.

### The Shadow of "Gray" Schemes: GMK Center Warning

The context of the appeal is reinforced by a previously voiced warning from the GMK Center analytical agency. In its view, the abolition of the zero quota for scrap exports by state-owned enterprises could bring back old "gray" schemes where Ukrainian scrap metal was exported to the EU without duties, re-registered, and then sent to Turkey. In fact, this made it possible to bypass the export duty of 180 euros per ton. As a result, traders made money on exporting raw materials, while the budget lost tens of millions of euros. The difference for the state is significant: exporting one ton of scrap metal brings the budget only 50–100 hryvnias, while the market value of a ton on international markets is measured in hundreds of euros.

The appeal of Ukrmetallurgprom captures the growing tension in the industry around the issue of distributing strategic raw materials between the domestic processing sector and the export channel. Against the backdrop of preparations for regulatory decisions for 2027, the metallurgists' position — in favor of maximum localization of processing and uniform rules for private and state participants — is becoming one of the key arguments in the discussion with the Ministry of Economy.

## Fact-Check & Sources

- [Условия должны быть равными: металлурги обратились в Минэкономики из-за аукционов по продаже лома](https://www.rbc.ua/ukr/news/umovi-mayut-buti-rivnimi-metalurgi-zvernulisya-1793621295.html) - Primary source: UMP letter text, calculation figures, quotes, mention of GMK Center. All facts of the article have been verified against this source.

## FAQ

### What exactly does Ukrmetallurgprom ask for in its appeal to the Ministry of Economy?

The association asks to regulate the mechanism for selling scrap metal of state-owned enterprises, ensure equal rules for all market participants, avoid exceptional conditions for state companies when introducing auctions, and approve a clear implementation plan for Ukrzaliznytsia scrap for 2027 on the domestic market.

### How much Ukrzaliznytsia scrap are metallurgists ready to buy?

According to Ukrmetallurgprom, Metinvest and Interpipe are ready to buy at least 65–70% of the volumes put up for auction at market starting prices. After full restoration of enterprise operations, this share can grow to 90–95%.

### What financial consequences does the association cite for different starting auction prices?

At a zero starting price, potential superprofits of exporters can reach 22.6 million euros, while the budget will receive nothing. At a starting price of 80 euros per ton and a quota of 200 thousand tons, the budget will receive about 16 million euros, while exports will remain profitable for traders.

### What are the 'gray' schemes warned about by GMK Center?

GMK Center points to the risk of returning schemes where Ukrainian scrap metal was exported to the EU duty-free, re-registered, and sent to Turkey, allowing them to bypass the 180 euro per ton export duty. The budget lost tens of millions of euros as a result.