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First May Auction Targets 70,000 Tons of Ferrous Scrap via Prozorro.Sale
Ukrainian Railways (UZ) plans to re-enter the domestic scrap market by holding its first auction in nearly two years on May 15, offering an initial 70,000 tons of scrap metal via the Prozorro.Sale system, according to UZ board member Yevhen Shramko.
A total of 159,500 tons of scrap are currently available for sale. UZ is the largest single source of scrap in Ukraine, historically accounting for 10–13% of total domestic scrap consumption. Its return to the market is considered critical to the country’s steel industry, which has been strained by reduced raw material supply.
In early April, the Ukrainian government granted UZ autonomy to dispose of property with a book value of up to UAH 500 million, allowing the company to independently initiate the sale of ferrous and non-ferrous scrap and crushed stone.
The Ministry of Communities and Territories Development confirmed that Ukrainian Railways can now sell up to 218,600 tons of ferrous scrap (valued at UAH 1.6 billion) and 3,800 tons of non-ferrous scrap (worth UAH 233.4 million).
Previously, all UZ property sales required government approval, a rule lifted in December 2023 after UZ’s request to amend regulations. The company last offered scrap at auction in September 2023, despite annual targets of 170,000 tons.
In 2023, UZ managed to sell only 76,400 tons, and in 2022, 113,000 tons, far below projected levels. Industry stakeholders hope that this renewed effort will stabilize supply chains for Ukrainian steelmakers.
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