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Kazakhstan has opted to extend its prohibition on the export of ferrous scrap as part of its efforts to bolster the domestic steel industry, according to reports from Kallanish citing government sources.
The decision to prolong the ban was reached during a meeting of the Interdepartmental Commission on Foreign Trade Policy and Participation in International Economic Organizations. The export of ferrous scrap and waste through railway checkpoints in several regions, including Zhaisan (Aktobe region), Aksu (Kostanay region), and Auyil (Abay region), has been restricted. However, the government has not specified the duration of the extension of the ban on scrap exports.
The Ministry of Industry and Construction of Kazakhstan reported that the total collection of ferrous scrap in 2023 amounted to approximately 1.9 million tonnes, while the domestic demand in the market reached 3.9 million tonnes.
This extension of restrictions comes after Kazakhstan previously extended the ban in November 2023 for six months. Although initially implemented seven years ago to support Kazakhstan's steelmaking sector, a significant portion of the scrap is exported to Russia. As both Kazakhstan and Russia are members of the Eurasian Customs Union (EAEU), the ban does not apply to other EAEU members.
In the period from January to August 2023, Kazakhstan exported 25 thousand tonnes of scrap, a notable decline from the 125 thousand tonnes recorded in 2021 and the peak of 1 million tonnes observed in 2019. The primary consumers of Kazakh scrap include EAEU countries, China, Iran, and Pakistan.
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