The Ministry of economic development and trade (MEDT) of Ukraine proposes to sell on electronic exchange auction of scrap ferrous, alloy and non-ferrous metals for the stabilization of the situation with the provision of this product in the domestic market and decrease in its exports.
The changes the Ministry proposed to amend the current law “On scrap metal”, and publicized them on its website.
The auction should be carried out on commodity exchanges, their procedure determined by the Cabinet of Ministers.
Purchased at auction volumes of scrap metal can be exported after the registration of the relevant documents.
The export of scrap metal received from military units and divisions, in accordance with the government-approved list is prohibited. Also prohibited the export of unsorted written off for scrap cars units, ships, ships, military equipment, railway equipment.
However, until may 16, 2017 the export of scrap metal is carried out only by specialized companies that have the equipment for processing of scrap metal.
At the same time, the government reserves the right to impose restrictions on the export of scrap metal, up to its complete ban.
The draft law provides for a three-month term to bring the regulatory acts of the Cabinet of Ministers in accordance with the law.
In the explanatory note to the bill States that the implementation of auctions of lots of scrap metal will allow to stabilize the situation with prices for this type of product, balancing domestic and export prices.
As reported, in the second half of 2012 the Ministry proposed to sell at the electronic auctions exports of ferrous scrap in accordance with an annual quota of export supply determined in accordance with the balance of demand and consumption of this raw material in the domestic market of the country.
It was also reported that in recent months the metallurgical enterprises of Ukraine are experiencing difficulties in providing scrap metal for preference loosbrock enterprises to export it. As a result, the steelmaking companies are forced to expend additional amounts of iron, which increases the cost of steel and reduces its competitiveness.
Ukrainian enterprises for operations with scrap of ferrous metals in January-October 2014 exported 797,484 thousand tons of ferrous scrap in the amount of $253,210 million, while in the same period of 2013 185,626 tonnes of scrap metal for $57,801 million
According to customs statistics, promulgated by the Ministry of revenues and fees in January-October-2014, the country reduced import of metal scrap in terms of 84.7% in comparison with January-October-2013 – to 27,489 tonnes.
In monetary terms, imports decreased by 79.6% to us $13,978 million
The import was mainly from Kazakhstan (62,35% of the supply in monetary terms), Turkey (of 34.81%) and Russia (1,65%); exports to Turkey (89,09%) and Moldova (10,58%).
As reported, from November 2012 to June 2013 inclusive, the exports of metal scrap was not carried out. At the end of 2013 (July-December) 255,272 exported thousand tons of scrap metal in real terms (in 2012 – 366,542 thousand tons) for $79,648 million ($153,138 million).
Ukraine in 2013 has also increased the import of metal scrap in volume terms by 2.1 times – up to 238,534 thousand tons, and in value by 40.1% to $89,401 million.
Supplies of scrap metal to metallurgical enterprises in 2013 fell by 11% – to 4,450 million tons.