Kazakhstan extends ban on scrap exports for 6 months

The ban will apply to colored and black scrap

On April 23, 2024, the Minister of Industry and Construction of Kazakhstan signed an order banning the export of ferrous and non-ferrous scrap for another 6 months. This is reported by KTK.

Thus, the export ban is extended from the previous order in November 2023. The restriction was first imposed 7 years ago. Thus, the country’s authorities are supporting the domestic steel industry. At the same time, the lion’s share of raw materials is still shipped to Russia, as the countries are members of the Eurasian Customs Union (EAEU), so the export ban is not in effect.

Export restrictions will apply to copper, aluminum, lead scrap and other non-ferrous secondary raw materials. Restrictions have also been imposed on the export of ferrous scrap from Kazakhstan by road and sea.

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 companies were utilized by an average of 35% last year.

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.