Business asks government to keep scrap metal export ban in 2027

The European Business Association has called on the government to maintain the zero quota for ferrous scrap metal exports in 2027. If the current restriction is lifted, businesses propose introducing an export duty of €180 per tonne for all destinations.

This was reported by the EBA, which made a corresponding proposal to the Cabinet of Ministers and the Ministry of Economy.

Currently, scrap metal exports are effectively halted due to the zero quota set by the government for 2026. The Ministry of Economy explained this decision by the need to keep strategic raw materials for Ukrainian metallurgical and machine-building enterprises, particularly for the production of defense and reconstruction products.

The EBA proposes to extend this regime for at least another year. The Association believes that against the backdrop of damage to production and energy infrastructure, scrap metal remains a critically important raw material for Ukrainian metallurgy.

Prior to the introduction of the zero quota, export volumes were rapidly increasing. According to the EBA, in 2025 Ukraine exported 448.68 thousand tonnes of ferrous scrap metal — 53% more than the previous year. Businesses fear that after the restrictions are lifted, exports will rise sharply again and create a deficit of raw materials on the domestic market.

The Association also emphasizes that domestic scrap metal processing allows added value to remain in Ukraine, supports jobs and tax revenues, and provides raw materials for the production of steel and finished metal products.

Energy consumption and environmental requirements are also separate arguments. Using scrap metal in steel production requires less energy and allows reducing CO2 emissions, which is becoming more important after the introduction of the EU's carbon border adjustment mechanism CBAM.

If the government decides not to extend the zero quota in 2027, EBA member companies propose an alternative mechanism — a duty of €180 per tonne of scrap metal regardless of export destination. At the same time, the Association notes that such a mechanism should take into account Ukraine's international obligations.

So far, the government has not made a decision on the scrap metal export regime for 2027. The EBA's proposal is the position of the business community, which the Cabinet and the Ministry of Economy should consider when forming trade policy for the next year.

Based on materials: European Business Association, Ministry of Economy of Ukraine