Kazakhstan considers boosting scrap procurement through EPR operator tools  The Agency for the Protection and Development of Competition of Kazakhstan is suggesting to encourage scrap collectors through extended producer responsibility tools via Operator EPR LLP, aiming to enhance scrap collection, as per the agency's press service.The agency reports that the moderately concentrated market for the production of rolled reinforcing bars for reinforced concrete structures is served by seven domestic companies with a combined design capacity of 1.8 million tonnes per year. However, these companies are operating at less than half of their capacity.The agency noted that the domestic market is 53% dependent on imports."The reason companies are operating at only half of their capacity is due to the export of scrap to neighboring countries, where prices are 30% higher. The ban has led to a drop in scrap collection volume, thereby reducing enterprise workload,” the agency said.The agency proposes several measures to ensure scrap metal availability in the domestic market, notably by incentivizing scrap collectors through fund allocation from the EPR operator."The imposed bans on scrap export pose risks of smuggling and diminish scrap collection volumes. The proposed incentives aim to supply domestic enterprises with raw materials, improve market transparency by formalizing market participants, and precisely record scrap collection volumes," the statement says.Other recommendations include implementing customs tariff regulation instruments similar to those in the Russian Federation, establishing exemptions within the framework of government procurement to foster domestic production, and providing state support to processing enterprises with enforced obligations to modernize production to increase scrap processing quality.The relevant recommendations and a draft roadmap have been forwarded to the Ministry of Industry and Construction.Since May 2023, Kazakhstan has banned the export of metal waste, renewed every six months. On February 12, the government decided to completely stop scrap metal exports, closing railway checkpoints: Zhaisan (Aktobe region), Aksu (Kostanay region), and Auyl (Abay region). This decision was due to the shortage of raw materials for domestic processing and neighboring countries' restrictions.Kazakhstan collected 1.9 million tonnes of scrap in 2023, half of what's needed (3.9 million tonnes).JSC Zhasyl Damu manages waste disposal under extended producer obligations acting as Operator EPR aiming to reduce environmental impact. (ICE ALMATY)

Fonte notizia: Interfax