KYIV, Dec 7 – The Ukrainian industrial company Interpipe may save up to $100 million a year in costs due to the increase by the Verkhovna Rada of the export duty on ferrous scrap from existing EUR 58 to EUR 180 per ton, Dmytro Khoroshun, an analyst at Concorde Capital, has said.

"The duty hike will be a major positive for Interpipe, which might save up to $100 million per year in pretax costs [37% of its 2020 EBITDA] as a result. We assume that Interpipe consumes about 1 million tons of steel scrap per year and that the duty hike will decrease Ukraine's domestic steel scrap price by $100/ton, or less, due to an increase in the duty of EUR 122 per ton," Khoroshun said in the Concorde Capital newsletter on Friday.