Kazakhstan extends scrap metal export ban till 1 Sep'24

Kazakhstan has extended its ban on scrap metal exports for six months, till 1 September 2024. This marked the fourth extension since the ban was initially imposed in June 2022.

Reasons for the ban: The government aims to combat illegal scrap metal exports and ensure sufficient domestic supply for processing industries. The ban targets specific types of scrap, including ferrous, copper, and aluminium scrap. Concerns have risen over the significant increase in scrap metal exports in recent years, leading to domestic availability issues.

Impact of the ban: The extension is expected to disrupt scrap metal export businesses in Kazakhstan and may affect domestic processing industries reliant on imported scrap. The overall impact on the Kazakh economy and metal-related sectors remains to be seen.

Additionally, authorities enforced restrictions on scrap exports via railway checkpoints in the Zhaisan, Aksu, and Auyil regions to address raw material shortages for domestic steel enterprises. The ban, initially introduced seven years ago, aims to support Kazakhstan's steel sector. While most scrap exports go to Russia, an EAEU member is exempted from the restrictions. Major consumers included EAEU countries, China, Iran, and Pakistan.

In 2023, Kazakhstan's steel production surged by 16.4% compared to 2022, reaching 3.92 million tonnes (mnt). However, flat product output saw a 3.6% decline y-o-y, totalling 2.45 mnt.