According to the Ukrainian Association of Secondary Metals, in 2010 Ukraine is expected to process around 6.65 million tonnes of scrap which is 12.8% or 750,000 tonnes more than in 2008, though it is about 1 million tonnes lower as compared to 2007.
During the current year, scrap deliveries to Ukrainian steel producers are expected to amount to about 6 million tonnes up by 20.5%YoY while Ukraine scrap exports are to exceed 600,000 tonnes down from 890,000 tonnes exported in 2009.
According to UAVtormet, these figures show that the volumes of scrap processed in the Ukraine changed according to the level of steel production in the country. Meanwhile, Ukraine annual scrap exports in recent years were in the range of 600,000 tonnes to 900,000 tonnes, whereas in 2000 the country exports of scrap amounted to only about 5 million tonnes. The low level of current exports of scrap is largely due to the fact that the domestic market has improved its consumption.
According to Ukraine monitoring and consulting company Ukrpromzovnishexpertyza, in 2011 the scrap consumption of the country steelmaking companies will increase, but only by 200,000 tonnes to 250,000 tonnes. Mr Vladimir Vlasyuk Ukrpromzovnishexpertyza's director said "Due to high competition in the global steel market, we are unlikely to be able to quickly ramp up steel production. I think that in this year Ukraine will produce about 32.3 million tonnes. In 2011, we will increase this amount by 1 million tonnes, not more. But we will unlikely achieve the past results. There are no sale markets for this."
Mr Vlasyuk said in 2011, the scrap processors will be able to satisfy domestic market demand with domestic inventories; however in 2012 a certain tension in balancing scrap supplies to Ukrainian steelmakers could be observed. In 2012, Interpipe will commission its new electric steelmaking plant which will require about 1.35 million tonnes to 1.4 million tonnes of scrap per year. Thus starting from 2012, Ukraine is expected to see a shortage of around 700,000 tonnes to 800,000 tonnes of scrap per year in the domestic market.