And suspended the mandatory state registration of contracts for export.
The Verkhovna Rada of Ukraine adopted the law providing increase for a period of three years, export duties for waste and scrap of ferrous metals from 10 euros to 30 euros per 1 ton, as well as the cancellation for this period of obligatory state registration of contracts for export of scrap metal.
The adoption of the Law "On amendments to some laws of Ukraine concerning reduction of the deficit of ferrous scrap in the domestic market in order priority to ensure the needs of the defense industry and recovery infrastructure" voted 268 deputies with the required minimum of 226 votes.
The head of the Verkhovna Rada Committee on industrial policy and entrepreneurship Viktor Galasyuk said, in reporting on the bill №3868, that the adoption of the document will support the domestic metallurgical enterprises. "This is necessary to save today the Ukrainian steel industry, which today is the critical shortage of this raw material, and which last year lost almost $ 5 billion. exports," Galasyuk said. He added that the steel industry accounts for a quarter of Ukrainian industry and almost one-third of exports. "The question of metallurgy – it's not an industry issue, it is a matter of national economic security of the country," Galasyuk said.
At the same time, Deputy Yuriy Levchenko (Svoboda) stated that the bill aimed to support the industry, however, this means the support of only two owners of the main companies in the industry. "But there is one big but, we have metallurgy is a private monopoly, and to be precise – oligopoly. It's two main competitors, who agreed among themselves as a cartel and artificially keep the market," said Levchenko. He said that this innovation will not bring any positive effects for the employees of these enterprises or budget from the point of view of tax revenues. "Because they avoid paying taxes, and being a monopoly industry, not to artificially raise wages," said Levchenko.
As noted in the explanatory note to the bill №3868, this document is aimed at stabilization of the situation in the steel industry and allied sectors through supply of scrap metal in the domestic market. Also expected to increase government revenue by increasing export duties on scrap metal and creating additional value added in the state by the deep processing of scarce raw materials.
As UNIAN reported earlier, Ukrainian metallurgical company repeatedly made demands to limit the export of scrap metal, as, in their opinion, at the present time the metallurgical enterprises there is a shortage of scrap and its export from the country has a negative impact on the steel industry.
As previously stated Victor Galasyuk, over the past few years Ukraine has significantly reduced the collection of scrap metal (4.2 million tonnes, a decline of 20%), with significantly increased exports to 1.2 million tons (about 300 thousand tonnes in 2011). The Deputy noted that in such circumstances it is necessary to create domestic metallurgical enterprises the possibility of stable operation by providing the Ukrainian raw materials.
While scrap that steelmakers are lobbying for the restriction of export or increase of duties on the export of scrap metal from the country for procurement of raw materials at prices that are significantly below market.
The state enterprise "ukrpromvneshekspertiza" emphasize that the collection of scrap metal in Ukraine in January-February this year decreased by 40% compared to November-December last year to 359 thousand tons, due to low offer prices from domestic steelmakers, as well as the absence of quotas on the export of scrap for the packers.
According to the state-owned enterprises, for most of February purchasing prices of the domestic market remained virtually unchanged and amounted to UAH 3 191/ton. However, in early March, the steel plant was forced to hold the increase in prices 150 UAH due to the need to stimulate supply. In addition, there was high probability of a resumption of exports, which has also pushed steelmakers to step up delivery to your address by raising prices. As of mid-March the average market price for scrap was $ 3 330 UAH/ton. According to experts of the state enterprise, in spite of the increase in procurement prices in the domestic market, steelmakers may raise quotes again after a significant rise in the cost of rent in foreign markets.
