- Quota for 2025 export licences set at 0 in draft resolution
- Historically, Ukraine caps exports when local demand surges
SteelDaily: The Ukrainian government is moving forward with plans to effectively ban the export of steel scrap beginning from 2025. The Ministry of Economy has initiated a public consultation process on a draft resolution that proposes to issue export licences for ferrous scrap under HS code 7204, with the quota set at ‘0’ for 2025. However, it is open to public input, and feedback is expected from industry stakeholders, including steelmakers and exporters.
This initiative is aimed at ensuring a stable supply of raw materials for Ukraine’s domestic steel industry, especially under ongoing wartime conditions. Historically, Ukraine has restricted scrap exports when local demand surged, and this proposed measure follows the same principle. A quota of zero export licences for 2025 would render overseas shipments virtually impossible.
Since the outbreak of war, Ukraine’s scrap exports have climbed up by 60% y-o-y to 293,200 t in 2023. The majority of exports were directed to European countries, led by Poland (248,600 t), Greece (34,200 t), and Germany (6,500 t).
South Korea has minimal direct trade in Ukrainian scrap, so this development is unlikely to have an immediate impact on the domestic market. Nevertheless, Korean industry players are closely watching this move as part of a broader global trend towards tightening scrap export controls.
Globally, steel scrap is increasingly regarded as a strategic resource due to its vital role in decarbonisation and environmentally sustainable steel production. As a result, more countries are imposing restrictions. Currently, 48 nations have some form of export control in place for ferrous scrap, with about a third enforcing outright bans.
The European Union has introduced the Carbon Border Adjustment Mechanism (CBAM) to stabilise its domestic raw material supply. Meanwhile, the US and China are also working to internalise their scrap resources. In total, about 77% of global crude steel is produced in countries that have implemented or are considering scrap export restrictions, underscoring a strong trend to retain scrap domestically.
South Korea, in particular, relies heavily on Japan for 70-80% of its steel scrap imports. With such high dependency, there are growing concerns that worsening global supply conditions could indirectly impact prices and availability, even without direct disruptions.
A market participant observed, “Ukraine is not a direct supplier to Korea, but globally, we are seeing a shift toward treating scrap as a strategic resource.”
The Ukrainian government maintains that the future focus will be on adding value to scrap domestically – converting it into finished steel products for export. With the steel sector being a major contributor to national revenue, the need to protect it through resource control is becoming increasingly critical.
Note: This article has been written in accordance with a content exchange agreement between SteelDaily and BigMint.
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