Scrap deficiency on the domestic market was 67 thousand tons or 17% of the needs in April
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2015-05-20
Scrap deficiency on the domestic market was 67 thousand tons or 17% of the needs in April
In April 2015, the Ukrainian metallurgical enterprises continued to experience a shortage of ferrous scrap. Supply failures of raw materials to steel producers amounted to 67 thousand tons, which is 17% of its needs. At the same time, exports of scrap in April amounted to 139 thousand tons, two times as much as the failure of supply on the domestic market.
According to the association "Metallurgprom" and insight from Interpipe, metallurgists’ requirement for scrap amounted to 383 thousand tons in April alone, with the actual amount of deliveries amounting to 317 thousand tons.
The volume of total exports of scrap from Ukraine in April, according to the State Fiscal Service, amounted to 139 thousand tons (March: 127 thousand tons; February: 92 thousand tons; January: 47 thousand tons). The export of raw materials from the country was the main cause of the deficiency on the domestic market.
Due to the shortage of scrap in April, steel mills in Ukraine in April stopped again. For example, idles on Interpipe Steel due to lack of scrap amounted to 7 days.
Ukranian metallurgists have felt the deficiency of scrap since the beginning of the year. From January to March, shortage of supply of scrap totaled 221 thousand tons or 23% of what was required. During the same period, the country had exported 266 thousand tons of scrap metal, which could fully meet the domestic demand. Overall, for 4 months the deficiency was 288 thousand tons with total exports of 405 thousand tons.
"There is a paradoxical situation. Ukraine provides raw materials and metallurgical complex in Turkey, while the domestic producers who pay taxes in the country where they work are without raw materials", — says Interpipe Director for Economics and Finance Denis Morozov.
The volume of the exports of scrap is governed by Decree of the Ministry of Economic Development and Trade of Ukraine № 381 of 04.17.2015. The document defines the level of export in 2015 — 1 million 250 thousand tons.
Reference:
Interpipe is global producer of steel pipes and railway wheels. The company’s products are marketed in more than 80 countries around the world through a network of sales offices located in key markets of the CIS, the Middle East, North America, and Europe.
In 2013 the company’s mills produced more than 1.1 million tons of pipe and wheel products.
Contact details for the mass media:
Lucy Novak
Phone: +380 67 565 00 42
Ludmila.novak@interpipe.biz
