Ukrainian Railways (UZ) is set to resume the sale of scrap metal, according to the Chairman of the Board. The company had halted scrap sales at open auctions since September 2023, creating uncertainty in the market and impacting the domestic supply of raw materials. This suspension came amidst a significant increase in scrap exports, which further strained the availability of scrap for local steelmakers.
Before the suspension, UZ had attempted to export scrap directly to Europe, aiming to bypass the Prozorro.Sales system and secure additional income. However, these plans faced regulatory hurdles and logistical challenges, including the need for significant investments in processing and transportation.
The Ukrainian government did not support UZ’s direct export plans, leading to the continued suspension of scrap sales. Despite these challenges, UZ is now preparing to restart auctions, with plans to offer up to 20,000 tons of scrap per month. This move is expected to alleviate some of the pressure on the domestic market and support the steel industry, which relies heavily on scrap as a raw material.
The resumption of scrap sales is seen as a positive step for UZ and the broader Ukrainian economy, providing much-needed raw materials for steel production and contributing to the stability of the market.
