Ukrainian Scrap Metal Industry on the Brink of Shutdown Due to Zero Export Quota

The scrap metal industry in Ukraine is close to a complete halt: as of August 20, metallurgical enterprises are hardly purchasing scrap, which hinders suppliers from selling their raw materials. Vladimir Bublej, president of the Association of Secondary Metals "UAVtormet," reported that the critical situation arose due to the introduction of a zero export quota for scrap metal starting January 1, 2026, which has closed off the foreign market. In the first seven months of 2026, scrap metal collection decreased by 25.3% — from 1.18 million tons to 0.88 million tons compared to the same period in 2025. Domestic consumption also fell by nearly 5% — from 0.87 million tons to 0.83 million tons. 43-45% of collection points have ceased operations, with this figure reaching 70% in western regions. Bublej noted that enterprises are not operating, salaries are not being paid, and families are left without means of livelihood. The state budget has lost 210-245 million UAH in taxes and about 84 million euros in foreign currency revenue. To address the issue, "UAVtormet" proposes establishing a limited quota for scrap metal exports to EU countries to restore competition and preserve jobs. Bublej emphasized that if enterprises are not allowed to operate, the scrap metal industry in Ukraine will come to a complete standstill in September.

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