Back to news 2016-06-22

Scrap deficiency on the domestic market amounted to 20% of the needs in May

In May 301 thousand tons of scrap iron were shipped on the domestic Ukrainian market while the needs totaled 375 thousand tons. Scrap iron deficiency has doubled relative to previous months of this year according to Metallurgprom Association. It amounted 74 thousand tons or 20% of metallurgists’ needs.
The worsening shortage of raw materials in May exists due to step up exports. In violation of the court's decision 113 thousand tons of scrap metal were exported abroad, which amounted to 27% of the total scrap collection per month.
"The export of 113 000 tons of scrap in violation with the decision of the court is a mockery at the law on the part of exporters of raw materials and promotion of officials. We see now that scrap procurement allowed not only to evade taxes, but also to ignore court rulings, - commented Denis Morozov, Interpipe CFO. - Processing industry remains out of work, and the ministry plans to initiate laws to bring scrap collection from the shadows, still, just words. "
Scrap collection in May 2016 amounted 414 thousand tons according to Metallurgprom Association. This figure is higher than in previous months of 2016 due to the seasonality, but it is lower than the same period of previous years. So, in January-May 2015 430 thousand tons were collected (-4%), in January-May 2014 – 505 thousand tons (-18%).
In January-May 2016 1377 thousand tons were collected, while in January-May 2015 – 1872 thousand tons and in January-May 2014 – 2160 thousand tons (-36%).
Data for 5 months of 2016 allows to correct the annual forecast of iron scrap collection to 2,9-3,3 million tons in 2016.
Systematic shortage of scrap on the domestic market became the reason of fast growth of alternative raw materials – HBI. According to data, published by State Fiscal Service, in January-May 2016 our country imported 44 thousand tons, that is in 7,7 times more than in analogous period of 2015 (5,7 thousand tons). HBI import is from Russia.
Reference on Interpipe:
Interpipe is global producer of steel pipes and railway wheels, based in Ukraine. 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 Ukraine, the CIS, the Middle East, North America, and Europe. In 2015 Interpipe supplied 600 000 tons of pipe and wheel products.
11,5 thousand employees are working in Interpipe.
Contact details for the mass media:
Lucy Novak
Phone: +380 67 565 00 42

Back to news