In 2023, Ukrainian scrap companies witnessed a remarkable surge in their scrap exports, marking a 3.4-fold increase compared to 2022, reaching a total of 182.48 thousand tons. The export revenue experienced a substantial uptick as well, growing by 2.8 times throughout the year in comparison to the previous year.
In December 2023, Ukraine's scrap exports reached 21.5 thousand tons, showcasing a notable increase of 52.2% compared to November and an impressive 85.4% surge compared to December 2022. The export revenue for the month amounted to $6.32 million, reflecting a 46.3% increase compared to the previous month and an 84.4% annual growth.
Contrastingly, Ukraine witnessed a decline in scrap imports by 41.1% in 2023 compared to 2022, reaching a total of 1.07 thousand tons. Import costs plummeted to $411 thousand, representing an 88.2% year-on-year decrease.
Notably, Poland and Greece emerged as the primary destinations for Ukraine's scrap exports, accounting for 85.4% and 8.9%, respectively, in monetary terms. On the flip side, Slovakia and Poland played significant roles in supplying raw materials to Ukraine, commanding shares of 47.6% and 21%, respectively.
From January to November 2023, Ukraine experienced a robust 27.3% increase in scrap collection compared to the same period in 2022, reaching an impressive 1.13 million tons. During these 11 months, scrap supplies to Ukrainian steel mills grew by 8.2% annually, reaching 910.9 thousand tons.
While most developed countries advocate for a ban on scrap exports to safeguard critical raw materials, especially in the context of the green steel industry, the dynamics are evolving. With global steel producers transitioning to electric arc furnaces, there's a potential shift in the European Union's role from exporter to importer of steel scrap within the next five years. This transformation is expected to intensify the competition for this essential raw material on the global stage.
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