Kazakhstan extends ban on scrap exports again

Restrictions on the export of raw materials are introduced as part of the support of the domestic steel industry

Kazakh authorities have extended the ban on the export of ferrous scrap in the interests of the domestic steel industry. This was reported by Kallanish with reference to government data.

A number of issues related to the support of the domestic steel industry were discussed at a meeting of the Interdepartmental Commission on Foreign Trade Policy and Participation in International Economic Organizations. In particular, the export of ferrous scrap and waste through the railway checkpoints of Zhaisan (Aktobe region), Aksu (Kostanay region) and Auyil (Abay region) has been restricted.

«The decision was made collectively amid the current situation regarding the shortage of raw materials for the operation of domestic steel enterprises and the application of restrictive measures by neighboring countries on scrap exports,» the statement said.

At the same time, the government did not specify the period of extension of the ban on scrap exports.

According to the Ministry of Industry and Construction of Kazakhstan, the total collection of ferrous scrap in 2023 amounted to about 1.9 million tons, while the domestic market demand was 3.9 million tons.

«Thus, the capacities of ferrous scrap consumer enterprises were utilized by an average of 35% last year,» the agency said.

Kazakhstan last extended the restrictions in November 2023 for a period of 6 months. Although the measure, first introduced 7 years ago, is aimed at supporting Kazakhstan’s steelmaking companies, the lion’s share of scrap is exported to Russia. Both countries are members of the Eurasian Customs Union (EAEU), so the ban does not apply to members of the union.

In January-August 2023, Kazakhstan exported 25 thousand tons of scrap, compared to 125 thousand tons in 2021 and a peak of 1 million tons in 2019. The largest consumers were the EAEU countries, China, Iran and Pakistan.

As GMK Center reported earlier, in 2023, Kazakhstan increased steel production by 16.4% compared to 2022, to 3.92 million tons. Flat products output fell by 3.6% y/y – to 2.45 million tons.