The Kazakhstan government has announced a significant policy shift in its steel industry regulation, implementing a comprehensive six-month export ban on steel billets and semi-finished products effective December 1, 2024. This strategic decision, formalized through Order No. 389 signed by the Minister of Industry and Construction on November 11, marks a pivotal moment in the nation's industrial policy.
The export restriction encompasses a wide range of steel products, specifically targeting billets under HS code 7206 and semi-finished products under HS code 7207. The ban applies across all transportation modes, representing a complete halt to the export of these intermediate steel products. This move follows an earlier decision to extend restrictions on ferrous and non-ferrous scrap exports, demonstrating Kazakhstan's committed approach to restructuring its steel sector.
The impact of this policy is particularly significant given Kazakhstan's current trade volumes. In the first three quarters of 2024 alone, the country exported 11.29 thousand metric tons of billets and 130.32 thousand metric tons of pig iron to Turkey, highlighting the substantial scale of trade being affected. This transformation in export policy represents a strategic pivot from being a raw material supplier to developing domestic manufacturing capabilities.
The government's primary objective is to stimulate domestic production of higher value-added steel products. By restricting the export of intermediate products, Kazakhstan aims to encourage local steel manufacturers to process these materials domestically, potentially creating new employment opportunities and increasing the industry's contribution to the national GDP. This approach aligns with global trends of countries seeking to move up the manufacturing value chain.
