The ban on the scrap metal export is expected to be extended for another 6 months in order to meet domestic demand
The government of Kazakhstan plans to extend the ban on scrap metal exports, but discussions will continue until October 5, 2022. SteelOrbis reports about it.
It is expected that the ban will be extended for another 6 months. The country’s authorities plan to restrict trade in order to ensure domestic market demand. It is predicted that the loading of local steelmakers will increase in the near future.
From May 6, 2022, the authorities of Kazakhstan introduced a ban on the export of scrap and ferrous and nonferrous metals waste.
This restriction is established by the order of the Republic’s Industry and Infrastructure Development Minister dated April 21, 2022 No. 224 “On some issues of scrap and ferrous and non-ferrous metals waste transportation”.
According to experts, the main reason for the introduction of a temporary ban on the export of scrap metal from Kazakhstan is the lack of raw materials for local steelmakers.
Representatives of Kazakh processing enterprises opposed the ban on the scrap metal export. According to them, the enterprises of the sector are ready to supply scrap metal to the country’s steel mills, but systematic delays in payment and violations of agreements by local consumers force them to focus on exports, which are now virtually unavailable.
As GMK Center reported earlier, in 2021, Kazakhstan’s procurement enterprises exported 872,200 tons of waste and ferrous metal scrap worth $288.8 million. In January-March 2022, the country exported 160,800 tons of scrap metal worth $50.4 million.