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Kazakh recycling industry comes under pressure from recent extension of scrap export ban

Kazakhstan recently extended its scrap metal export ban by six months until September 1, 2024, the fourth extension since the ban was initially introduced in June 2022.

Kazakh recycling industry comes under pressure from recent extension of scrap export ban

The main reason for the ban is that the government is keen to crack down on illegal exports of scrap metal and wants to ensure sufficient domestic supplies for recycling industries. The ban applies to specific types of scrap, including ferrous, copper and aluminum scrap. In recent years, there has been increased concern about a significant increase in the export of scrap metal, which has led to problems with its availability in the domestic market.

The extension of the ban is expected to disrupt scrap metal exports in Kazakhstan and could impact the domestic recycling industry dependent on imported scrap. The overall impact on the Kazakh economy and metallurgical industries remains to be seen.

In addition, the authorities introduced restrictions on the export of scrap through railway checkpoints in the Zhaisan, Aksu and Auyil regions in order to solve the problem of a shortage of raw materials for domestic metallurgical enterprises. The ban, originally introduced seven years ago, is aimed at supporting Kazakhstan's steel sector. Although most scrap exports go to Russia, the EAEU member is exempt from restrictions. The main consumers were the EAEU countries, China, Iran and Pakistan.

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