Fresh Act Proposes Extension of Ban on Scrap Metal Exports

SEATTLE (Scrap Monster): The Kazakhstan administration has announced publication of a new draft decree which proposes extension of the country’s existing ban on scrap metal exports by truck. The ban was initially introduced in October 2018 for a period of two years. The document is open to public comments until 15^th October. It proposes extension of the ban for ad additional two-year period starting 23^rd October, 2020.

The original ban, introduced in 2018, was aimed at preventing illegal scrap exports and addressing the critical shortage of available scrap for domestic steelmakers. It had banned exports of used and exhausted pipes, rails, railway elements and rolling stock. Also, it had exempted alloyed and resistant steel scrap. The ban was not applicable to shipments of scrap metals by rail.

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However, Kazakhstan imposed a ban on scrap metal exports by rail in May this year, without prior notice. This in turn has led to severe shortage for scrap in Russia and has led to surge in domestic ferrous scrap prices in that country. Consequently, Russia had lodged a complaint with the Eurasian Economic Commission, alleging that Kazakhstan’s ban has led to creating of obstacle to the free movement within the EEU. It must be noted that Russia is a key scrap trade partner of the country.