Restrictions on the export of raw materials are introduced as part of support for the national steel industry
The Kazakh authorities have extended the ban on the export of ferrous scrap in the interests of the national steel industry. This was reported by Kallanish with reference to government data.
Several issues related to support for the national steel industry were discussed at a meeting of the Interdepartmental Committee on Foreign Trade Policy and Participation in International Economic Organizations. In particular, the export of scrap and ferrous waste through the railway checkpoints of Zhaisan (Aktobe region), Aksu (Kostanay region) and Auyil (Abay region) was restricted.
«The decision was taken collectively amid the current situation of shortage of raw materials for the operation of national steel mills and the application of restrictive measures by neighboring countries to scrap exports», states the statement.
At the same time, the government did not specify the period of extension of the scrap export ban.
According to the Ministry of Industry and Construction of Kazakhstan, the total collection of ferrous scrap in 2023 amounted to around 1.9 million tons, while domestic market demand was 3.9 million tons.
“Thus, the capacities of companies consuming ferrous scrap were used by an average of 35% last year,” said the agency.
Kazakhstan last extended restrictions in November 2023 for a period of 6 months. Although the measure, first introduced seven years ago, aims to support Kazakhstan's steel companies, most of the 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 biggest consumers were the EAEU countries, China, Iran and Pakistan.
As previously reported by Compraço, in 2023, Kazakhstan increased steel production by 16.4% compared to 2022, to 3.92 million tons. Production of flat products fell 3.6% year on year – to 2.45 million tonnes.
