Kalenkov explained why Ukraine imposed a temporary restriction on scrap exports

SEATTLE (Scrap Monster):  At the end of 2025, the government of Ukraine imposed a temporary restriction on scrap exports due to a shortage of 200 thousand tons of raw materials on the market, which led to steel production below the planned level and losses to the state in the form of a shortfall of $700 million in foreign exchange earnings and billions of hryvnias in tax revenues.

This was announced by Alexander Kalenkov, President of the Ukrmetallurgprom Metallurgical Association, in an interview with the GMK Center analytical portal.

"Scrap exports from Ukraine increased from 50,000 tons in 2022 to 450,000 tons in 2025. The country's scrap metal production has decreased several times. This has led to a shortage of scrap in Ukraine, which we estimate at approximately 200,000 tons in 2025. Less scrap than needed was delivered to Ukrainian enterprises. This had a negative impact on both electrometallurgical enterprises using exclusively scrap metal and enterprises operating on iron ore. Scrap is required in all steel production methods (open–hearth, converter and electric arc)," he said.

According to him, in 2025, metallurgical enterprises produced less steel than they could. "Ukraine has lost approximately $700 million in foreign exchange earnings and billions of hryvnias in tax revenues. Losses for the state from the growth of scrap exports are obvious," stressed Alexander Kalenkov.

The head of Ukrmetallurgprom recalled that the mining and metallurgical complex is one of the few industries that continues to operate, generates foreign exchange earnings and provides tax revenues. "It is important that she maintains her working capacity. The industry is the main supplier of special steels for the defense industry and steel structures for fortifications. This raises the question of not only the economic, but also the physical security of the country, as well as providing the front with everything necessary," he stressed.

At the same time, the specialist said that the association was surprised both by the fact of the indignation of Polish metallurgists against the decision of the Ukrainian government, and by the arguments given.

"The Polish scrap market is almost 7 million tons. In 2024, 350 thousand tons of scrap were shipped from Ukraine to Poland, which is less than 5% of the Polish market. In 2024, approximately 3 million tons of scrap metal were exported from Poland. Almost the entire volume of Ukrainian scrap passed through Poland in transit in order not to pay export duties in Ukraine, and it did not remain in Poland. This is easy to track: some of the scrap goes directly from Ukraine to the port of Gdansk, where it is "shuffled". Ukrainian scrap producers have set up enterprises in Poland and are simply re–exporting Ukrainian scrap to third countries, in particular to Turkey," stated Alexander Kalenkov.

 Courtesy: www.metallurgprom.org