The European Business Association (EBA) supported the draft government resolution on a temporary ban on exporting ferrous scrap until December 31, 2022, including on the basis of environmental considerations. This is stated in the organization’s letter to the First Deputy Prime Minister, Minister of Economy of Ukraine Oleksiy Lyubchenko, UNIAN reports.
The Association believes that adopting the draft resolution will have a positive effect on the metallurgical industry and the economy of Ukraine as a whole, in particular, on the way to decarbonization.
"A temporary export restriction is being impoed, including on the basis of environmental considerations. For instance, each ton of recycled scrap metal reduces CO2 emissions by 1.5 tons, the use of iron ore—by 1.4 tons, coal—by 740 kg, and also requires only 1/3 of energy consumption in comparison with the production of steel from natural materials," as stated in the letter.
The EBA notes that such results are of particular importance for Ukrainian metallurgy in the context of the expected introduction of the carbon border adjustment mechanism (CBAM). The costs of metallurgists for this, according to the estimates of business representatives, can annually reach $628.3 million euros.
Context. On September 30, the Ministry of Economy published a draft resolution on a temporary—until the end of 2022—ban on the export of scrap metal from the country that the Association Ukrmetallurgprom had been recently insisting on.
The explanatory note to the document states that, taking into account international agreements, the ban will not apply to exports to the EU, Great Britain, and Northern Ireland, the CIS (except for the Russian Federation), Israel, Canada, Montenegro, and the EFTA countries.
Earlier, the Association of Enterprises Ukrmetallurgprom appealed to Prime Minister Denys Shmyhal with a request to support the position of the mining and metallurgical complex and to consider the possibility of imposing a temporary ban on the export of scrap metal from Ukraine as soon as possible. Ukrtruboprom, Interpipe Steel, and ArcelorMittal Kryvyi Rih supported the appeal.