Government Initiative to Regulate Steel Billet Exports

Kazakhstan’s Ministry of Industry and Construction has drafted a new regulatory order titled “On some issues of regulating the export of steel billets,” signaling a major policy shift in the country’s steel industry. The proposal aims to impose a six-month embargo on the export of iron and non-alloy steel billets, including ingots and other primary forms, as well as semi-finished steel products. The only exception is iron categorized under tariff heading 7203. This move covers all modes of transport, road, rail, air, and maritime, indicating the government’s intention to fully control the flow of raw steel materials abroad.

Stimulating Local Processing & Industrial Growth

The ministry explains that the export restriction is designed to encourage domestic steel producers to process more raw materials within Kazakhstan rather than exporting them in semi-finished form. By retaining billets inside the country, the government hopes to foster the production of finished steel goods such as construction materials, pipes, automotive components, and machinery parts. This strategy aligns with Kazakhstan’s broader goal of developing a more robust, self-reliant industrial base with higher added value, moving beyond simply exporting raw metals.

Draft Order Public Consultation & Regulatory Process

The draft regulation has been published on Kazakhstan’s Open NPA portal, where it will be open for public comment until June 11. Industry stakeholders, exporters, trade associations, and citizens are invited to review and provide feedback on the proposed export restrictions. After the consultation period, the ministry will consider public input before finalizing the order. This consultative approach allows for transparency and potential adjustments based on industry and market concerns.

Next Steps & Timeline

The public consultation phase ends on June 11, after which the Ministry of Industry and Construction will review comments and finalize the regulation. Once enacted, the six-month export ban on billets and semi-finished steel products will likely begin soon, representing a decisive government intervention in Kazakhstan’s steel trade. Stakeholders across the steel supply chain, producers, exporters, and buyers—are preparing to adapt to this significant policy shift.

Key Takeaways:

• Kazakhstan plans a six-month embargo on exporting iron and non-alloy steel billets to boost domestic steel manufacturing.

• The ban covers all transport modes, excluding only iron under tariff heading 7203, and is open for public discussion until June 11.

• The policy aims to strengthen Kazakhstan’s economy by promoting value-added steel production, reducing reliance on imports, and supporting industrial modernization.