Romanian scrap suppliers are against the monopolisation of this sector in Moldova

In an appeal to the Moldovian authorities and the Romanian and EU ambassadors, 13 leading Romanian suppliers warned of the serious consequences of monopolising the import of steel scrap. This could lead to the complete closure of MMZ and violate international agreements, including the Association Agreement with the EU.

Earlier, a similar call was sent to the authorities by Moldavian scrap suppliers and the patronage association of MMZ suppliers. Currently, more than 50 economic agents representing small and medium-sized enterprises sell scrap to the MMZ in Ribnita.

The planned tax monopoly of Metalferos means that MMZ can only buy raw materials from this company, which will increase the price of the plant's scrap and seriously affect its financial situation.

According to market experts, Metalferos will be based on the average value of ferrous scrap quotations on the Turkish LME CFR exchange for the last week, and may, at its discretion, increase it by up to 30%. This will be the cost of scrap acceptance in Moldova's domestic market.

Metalferos, in turn, will be entitled to add up to 5% to the Turkish quotations when selling scrap to the Moldava Steel Works.

The authors of the declaration warned the Moldavian government about the serious consequences of monopolising the import of ferrous steel waste and asked to remove this provision from the draft government decision entitled ‘Regulation on the activity of the tax monopoly on the ferrous steel waste market in the Republic of Moldova’.