The Armenian government has taken a significant step towards boosting its local steel production industry by extending the ban on the export of ferrous and non-ferrous scrap and waste for another 6 months. This decision, signed on May 23, 2024, aims to regulate the export of scrap materials, which play a crucial role in providing raw materials for the metallurgical industry in Armenia.
Due to the lack of effective iron ore deposits in the country, Armenian steel mills heavily rely on locally collected scrap as their primary raw material. Since the initial implementation of the export ban in 2020, the local steel production has witnessed a substantial increase. With the ban in place, the volume of rolled steel production surged to more than 115.2 thousand tons in 2021 and 119.6 thousand tons in 2022.
As a result of the government’s measures to boost the steel industry, investments totaling $100 million were made in 2022-2023, leading to the creation of 550-750 new jobs in the sector. Additionally, the use of local scrap is expected to increase by 65-70%, with annual consumption reaching 250 thousand tons.
This move by the Armenian government aligns with similar actions taken by Kazakhstan, where the export ban on ferrous and non-ferrous scrap was also extended for another 6 months. Despite the ban, the majority of raw materials are still being shipped to Russia, as both countries are members of the Eurasian Customs Union (EAEU), allowing for continued exports within the union.
