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Poland Seeks EU Action After Ukraine’s Ban on Steel Scrap Exports
(MENAFN) Poland is calling for immediate European Commission intervention following Ukraine's abrupt prohibition on steel scrap exports to the bloc, Business Insider Polska reported this Wednesday.
Ukraine imposed zero-quota restrictions on ferrous scrap shipments beginning January 1, 2026, after announcing the policy in late December. Kyiv justified the embargo as necessary to stabilize its domestic steel industry amid ongoing wartime economic strain.
The ban directly threatens Poland's steel manufacturing sector, which relies on Ukraine as its primary EU supplier of scrap metal. Approximately half of Polish steel output comes from electric arc furnaces—facilities that use scrap as their main feedstock instead of iron ore.
"A shortage of scrap may lead to higher production costs, reduced competitiveness and a real risk of production cuts and job losses," Poland's Ministry of Development and Technology told the outlet.
Polish industry officials warn that domestic mills now confront escalating material expenses while Ukrainian manufacturers—newly positioned to stockpile scrap internally—could secure pricing advantages that undermine fair competition across European markets.
Warsaw attempted to prevent the standoff before it materialized. On December 18, 2025—two weeks before the restrictions launched—the ministry issued a formal appeal urging Ukraine to abandon export caps that would damage Polish enterprises.
That request, directed to Ukraine's deputy minister overseeing economic and industrial strategy, received no response, according to officials.
Poland has now escalated the matter to Brussels, contending the dispute involves the EU's shared trade framework and threatens to fracture the single market's cohesion.
"The Ministry of Development and Technology has requested urgent intervention from the European Commission to prevent the introduction of scrap export restrictions affecting EU member states, including Poland," the ministry said.
Authorities confirmed the concern will also be addressed during forthcoming bilateral discussions with Ukrainian officials.
The conflict emerges during a particularly delicate period. Ukraine continues depending extensively on EU financial assistance and political solidarity, while Poland has maintained its position as one of Kyiv's most robust European allies—providing military equipment, diplomatic advocacy, and economic support.
Yet the disagreement highlights escalating friction between wartime industrial protection measures and EU marketplace regulations as Ukraine works to safeguard critical sectors while pursuing deeper economic alignment with the bloc.
Comparable disputes may proliferate as Ukraine reconstructs its industrial base under wartime conditions, even as EU manufacturers contend with mounting expenses, competitive pressures, and decarbonization mandates, sources indicate.
Ukraine imposed zero-quota restrictions on ferrous scrap shipments beginning January 1, 2026, after announcing the policy in late December. Kyiv justified the embargo as necessary to stabilize its domestic steel industry amid ongoing wartime economic strain.
The ban directly threatens Poland's steel manufacturing sector, which relies on Ukraine as its primary EU supplier of scrap metal. Approximately half of Polish steel output comes from electric arc furnaces—facilities that use scrap as their main feedstock instead of iron ore.
"A shortage of scrap may lead to higher production costs, reduced competitiveness and a real risk of production cuts and job losses," Poland's Ministry of Development and Technology told the outlet.
Polish industry officials warn that domestic mills now confront escalating material expenses while Ukrainian manufacturers—newly positioned to stockpile scrap internally—could secure pricing advantages that undermine fair competition across European markets.
Warsaw attempted to prevent the standoff before it materialized. On December 18, 2025—two weeks before the restrictions launched—the ministry issued a formal appeal urging Ukraine to abandon export caps that would damage Polish enterprises.
That request, directed to Ukraine's deputy minister overseeing economic and industrial strategy, received no response, according to officials.
Poland has now escalated the matter to Brussels, contending the dispute involves the EU's shared trade framework and threatens to fracture the single market's cohesion.
"The Ministry of Development and Technology has requested urgent intervention from the European Commission to prevent the introduction of scrap export restrictions affecting EU member states, including Poland," the ministry said.
Authorities confirmed the concern will also be addressed during forthcoming bilateral discussions with Ukrainian officials.
The conflict emerges during a particularly delicate period. Ukraine continues depending extensively on EU financial assistance and political solidarity, while Poland has maintained its position as one of Kyiv's most robust European allies—providing military equipment, diplomatic advocacy, and economic support.
Yet the disagreement highlights escalating friction between wartime industrial protection measures and EU marketplace regulations as Ukraine works to safeguard critical sectors while pursuing deeper economic alignment with the bloc.
Comparable disputes may proliferate as Ukraine reconstructs its industrial base under wartime conditions, even as EU manufacturers contend with mounting expenses, competitive pressures, and decarbonization mandates, sources indicate.
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