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Steelmakers ask Ukrainian Government to prolong export duties on metal scrap
16:51, 15 June 2017
Steelmakers ask Ukrainian Government to prolong export duties on metal scrap

They ask to support the extension of the export duties on the metal scrap in amount of 30 euro for two years

16:51, 15 June 2017

Open source

The Directors General of the three the largest metal enterprises of Ukraine appealed to Petro Poroshenko, the President of Ukraine and Volodymyr Groysman, the Prime Minister of Ukraine to prevent the increase of the scrap deficit on the inner market of Ukraine. Uaprom.info reported this.

The steelworkers ask to support the extension of the export duties on the metal scrap in the amount of 30 euro for two years (as the Decree of Ukraine #6383 from April 4, 2017provides).

According to the edition, the management of the Ilyich Iron and Steel Works, Zaporizhstal and Azovstal Iron and Steel Works is afraid that after the end of the Decree of Ukraine of Amendments in Ukrainian Decrees concerning the increase of the black metal scrap deficit on the inner market, the situation with the supply to the steelworkers of the strategical raw materials will deteriorate in Autumn 2017. The Ukrainian metallurgical complexes would be forced to restrain the production of the end product. It poses a threat to the financial and economic indexes and the future of the workers of the enterprises and related industry. 

‘The making of the quality metal products is impossible without enough amount of the scrap. We know as nobody else knows that is very difficult to maintain the work of the metallurgic enterprise in the terms of the metallurgic material lack. The decision to export the great amounts of the metal scrap from Ukraine was made in 2015-2016’, the message of Yuriy Zinchenko, the Director General of the Ilyich Iron and Steel Works reports.

According to the mass media, the stable activity of the Azovstal Iron and Steel Works is under the threat because of the Ministry of Economic Development and Trade of Ukraine shortfall policy on the formation of the balance of the creation and storage of the scrap for the last two years. Enver Tskitishvili, the Director General of the enterprise reminded, that the strategically important orders were failed and the collective was downsized on the basis of the scrap deficit that became the perspective of the further progression of the events at the enterprise.

According to the letter, the situation with the scrap got better only due to the increasing of the export duties on the metal scrap.

‘Despite the positive shifts on this issue, the exhaustion of the metal fund of Ukraine in the time of the hollowing-out of the raw material from the inner market in favor of the external market and the loss of the part of the Ukrainian territory remain the negative influence on the situation’, Rostyslav Shurma, the Director General of the Zaporizhstal noted in his letter to the Ukrainian governance. 

As at first four months of 2017, the deficit of the scrap in Ukraine consists more than 200 thousand of tons. 

According to the steelmakers, the expansion of the export duties on metal scrap for two years will allow to maintain the existing level of production and even to increase it, maintain the thousands of the work positions and the proper contributions of the metallurgic sphere to the state budget of Ukraine. The Ilyich Iron and Steel Works, Zaporizhstal and Azovstal Iron and Steel Works remain to be the main of the taxpayers to the state budget of Ukraine despite the adversity on the inner market and increasing of the rivalry on the inner markets. 

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