The Kyrgyz government has officially extended its temporary export ban on ferrous scrap metal and remelting ingots for an additional six months. Promulgated under Cabinet of Ministers Resolution No. 564, the decision restricts exports under EAEU tariff code 7204, effectively overriding previous directives to maintain strict domestic retention of essential raw materials.
Regional Protectionism in Scrap Markets
This policy extension reinforces a growing wave of scrap protectionism across Eurasia. Neighboring Kazakhstan extended its own comprehensive ban on ferrous and non-ferrous scrap exports via all transport modes earlier this year. Regional governments are prioritizing raw material security for domestic mini-mills and electric arc furnace (EAF) operators to insulate local industrial value chains from global shortages.
Global Supply Chains Adjust to EAF Demand Shift
The decision comes at a time when global demand for secondary raw materials is decoupling from primary steelmaking trends. Global scrap consumption expanded by 4.5% year-on-year to 480 million tonnes, despite a 2.5% contraction in overall global steel output. China continues to drive secondary material usage, increasing scrap consumption by 8.3% to 227 million tonnes even as its primary crude production fell.
Meanwhile, the European Union maintained its position as the premier global scrap exporter, shipping 16.7 million tonnes overseas, primarily targeting key processing centers in Turkey and Egypt. With regional trade barriers rising in Central Asia, secondary material flows will continue re-routing through regulated corridors.
Market Impact
○ Impacted Metals: Ferrous Scrap, Heavy Melting Scrap, Remelting Ingots, EAF Feedstock
○ Direction: Bullish
○ Time Horizon: Medium-term
○ Affected Industries: Steelmaking, Electric Arc Furnace Steel, Recycling, Scrap Processing, Trade Logistical Services
○ Related Price Reports: Stainless Steel Weekly Price Report
○ Watch Item: Track EAEU regulatory filings for potential non-ferrous export restrictions following Central Asian ferrous policy extensions.
SuperMetalPrice Commentary:
Kyrgyzstan’s policy choice highlights the intensifying global contest for scrap as steelmakers accelerate decarbonization through electric arc furnaces. By locking scrap within national borders, regional governments protect domestic margins but aggravate supply deficits in import-reliant manufacturing hubs elsewhere. Expect regional price dislocations to widen as export channels close further.
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