Posted on 27 Aug 2024
Kazakhstani authorities have extended the country’s ban on exports of ferrous scrap in the interests of the domestic steelmaking industry, says Kazakhstan’s Ministry of Industry and Construction.
The ban on the export of waste and scrap of non-ferrous and ferrous metals from Kazakhstan is thereby extended for another six months from 22 August, Kallanish notes.
The measures are being introduced to help boost capacity utilisation at mills experiencing a shortage of scrap, and to combat the illegal circulation of scrap, the ministry says.
In June, the Kazakh government said it planned to extend the ban on exports of ferrous scrap (see Kallanish passim).
Domestic ferrous scrap collection in 2023 amounted to about 1.9 million tonnes, with a total domestic market demand of 3.9mt.
Although the purpose of the measure, first introduced seven years ago, is to support Kazakh steelmaking enterprises, Kazakh scrap has continued to be supplied to Russia. Both Russia and Kazakhstan are members of the Eurasian Customs Union (EAEU). The ban was nevertheless recently extended to EAEU members.
In January-August 2023, Kazakhstan exported only 25,000 tonnes of scrap compared to 125,000t in full-year 2021, and against the peak of 1mt in 2019, according to the latest government data. Most shipments went to EAEU countries, China, Iran, and Pakistan.
Last week, meanwhile, Kazakh authorities were reported to be mulling a tax on exports of sulphur, coal, ferroalloys, and ores and concentrates of copper and iron.
Russia’s government introduced scrap export quotas from the beginning of 2023 and their validity has been extended several times. The quota size has been set at 600,000t.
Russia has said Kazakhstan’s move to limit scrap exports by rail will disrupt raw material supply to steelmakers and can be reported to the EAEU as an internal market trade barrier (see Kallanish passim). Russian imports of Kazakh scrap in 2023 amounted to 591,000t.
Earlier, Kyrgyzstan also introduced a ban on ferrous scrap exports outside the EAEU for six months (see Kallanish passim).
Source:Kallanish
