- New Uzbek tariff structure to come into effect from 1 July
- Kazakhstan will also extend its scrap export ban for another 6 months
The Uzbek government has introduced a 100% export tariff on metal raw materials, including ferrous scrap, as part of its latest trade policy adjustments.
Additionally, Kazakhstan has decided to extend its scrap export ban for another six months, starting February 2025. This step is intended to secure a stable raw material supply for the country’s steel industry.
Tariffs on 86 products from 1 July
Under a decree signed by President Shavkat Mirziyoyev, the new tariff structure will apply to 86 products, including ferrous and non-ferrous metal scrap, starting 1 July. This measure is aimed at protecting domestic industries and attracting investment into local processing sectors.
Additionally, the government will eliminate the existing export licencing system, shifting to a tariff-based regulation for better control over exports.
WTO’s possible adjustments
To monitor the impact of these reforms, the WTO Response Evaluation Committee has been formed. This committee will conduct quarterly reviews and, if necessary, propose adjustments to the Office of the President and the Cabinet to ensure the policy remains effective.
Global update
While Uzbekistan’s direct trade with the Korean steel industry is minimal, industry experts warn that this decision could reduce scrap supply from Central Asia. The restriction may also impact the availability of special and alloy steel raw materials for China and Russia, potentially leading to higher prices in Southeast Asia and other markets.
Recent export duties and regional policies
Uzbekistan’s export duties
- Within quota: 5% duty, but not less than EUR 15/t ($15.54)
- Beyond quota: 5% duty, but not less than EUR 290/t
Armenia’s scrap export ban
- Extended in November 2024 for an additional six months, covering exports to EAEU countries until 31 July 2025.
Kazakhstan’s scrap export ban
- Extended again starting 2 November 2024, for another six months.
Russia’s increased scrap export quota
- In December 2024, Russia raised the tariff quota for ferrous scrap exports outside the EAEU from 650,000 t to 1.5 million tonnes (mnt), effective from 1 January- 31 December 2025.
Outlook
With multiple countries tightening control over scrap exports, a regional shift toward resource protectionism is becoming evident. These evolving policies may reshape global scrap supply chains and influence market pricing dynamics worldwide.
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