Ukraine is rapidly approaching a shortage of strategic raw materials – scrap metal, which is critical for the metallurgical industry, economic recovery and the defense industry. This is evidenced by data from industry associations and export flow statistics for the first quarter of 2025.
Harvesting of scrap metal in Ukraine in 2025 is close to the lowest level since 1995, if we do not take into account the abnormal 2022. The reasons are obvious: full-scale war; destruction or shutdown of metallurgical plants; loss of industrial regions; lack of investment in scrap metal harvesting; reduced incentives for the domestic market due to the growth of shadow exports.
Against this background, dozens of Ukrainian enterprises, including those associated with the restoration of infrastructure and production of military equipment, risk being left without raw materials.
Despite the fact that the domestic market is suffering from a shortage of scrap metal, the export of this raw material is growing at a record pace. According to data for April 2025, export volumes reached 46 thousand tons, which is 95% more than in April 2024.
The key importers of Ukrainian long steel remain Poland, a stable leader in terms of purchases; Moldova, a growing market with high demand for construction materials; and Romania, an important player in the region, expanding purchases after the reconstruction wave.
Thus, the main export item (38% of the total volume) is other bars and bars of carbon steel, without further processing, twisted (UKTVED – 7214). They were shipped 157.74 thousand tons (+341.4% YoY). The main part of production was directed to Poland – 94.1 thousand tons. Another 49.4 thousand tons were exported to Moldova and 4.65 thousand tons – to Lithuania.
Romania became the leader in imports of hot-rolled bars and bars produced from carbon steel, in bunches – 76.12 thousand tons.
However, experts warn: the lion’s share of these exports is not transparent. A gray scheme is used: scrap is formally exported to the EU countries, paying a symbolic duty of 10 euros per ton, and then re-exported to Turkey. Thus, the business avoids paying the main duty for direct export to Turkey, which is 180 euros per ton. And already from Turkey it is received by Moldovan and other buyers.
According to industry analysts’ calculations, the Ukrainian state budget has already lost more than UAH 2 billion (more than EUR 40 million) due to lost customs revenues associated with indirect export of scrap. And these losses are only growing.
