The first scrap metal auctions of Ukrzaliznytsia after a one and a half year pause failed
Photo: Oleksandr Pertsovsky, Chairman of the Board of Ukrzaliznytsia

The first auctions of Ukrzaliznytsia for the sale of 12,000 tons of scrap metal after a one and a half year pause did not take place due to low interest from business. This was reported by the company's press service.

No bids were submitted for some lots, and only one bidder appeared for others, making it impossible to hold the auction.

Ukrzaliznytsia explained that before announcing the first auctions, they held a meeting with the market, in which more than 30 companies participated.

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Based on the results of these consultations, Ukrzaliznytsia took into account the wishes of business, and market representatives expressed their willingness to participate in auctions.

Ukrzaliznytsia cited the potential introduction of licensing and quotas for the export of ferrous scrap as one of the reasons for the insufficient number of auction participants.

"According to the draft decision, it is proposed to establish a zero export quota for 2025, which significantly affects market expectations and deters companies from participating in the bidding," the company noted.

Ukrzaliznytsia added that the process of approving this document coincided with the resumption of scrap metal sales.

The company urges the authorities not to introduce a zero quota and continues the dialogue with the market.

The Ukrainian Association of Secondary Metals has appealed to President Volodymyr Zelenskyy to intervene in the process of approving a ban on the export of ferrous scrap.

The professional community believes that such a decision "will harm the scrap metal industry, as key market principles of competition will be violated, and scrap metal processors will be deprived of the opportunity to work and earn money."

At the same time, UAVtormet offers an alternative: to introduce a Balance of Production and Consumption of Ferrous Metal Scrap, which must be approved annually by the Ministry of Strategic Industry.

  • In October 2024, Ukrzaliznytsia received the right to independently lease property on a competitive basis, if its book value does not exceed UAH 500 million.
  • On April 8, the Cabinet of Ministers allowed Ukrzaliznytsia to sell scrap and crushed stone.