Armenia Extends Scrap Export Ban for Another Six Months

Published on November 18, 2024

The Armenian government has extended the country’s scrap export ban for six months until July 31, 2025. The ban, initially set to expire on January 30, 2025, aims to regulate scrap exports, develop local production, ensure sufficient raw material access for local companies, and stimulate the activities of Armenia’s manufacturing industry.

Background and Rationale:

The initial ban was introduced in December 2023 to address the need to regulate the export of ferrous and non-ferrous scrap metal. The extension decision is part of a broader strategy to support the local steel industry by attracting new investments and securing a steady supply of raw materials.

Impact on Local Production:

Since the ban’s introduction, Armenia has significantly increased local steel production. The government’s measures have led to investments totaling around $100 million, creating 550-750 new jobs in the steel industry. The extension of the ban is expected to enhance local production capabilities further and reduce dependency on imports.

Economic and Environmental Benefits:

Extending the export ban is anticipated to bring economic and environmental benefits. By ensuring a steady supply of scrap metal for local companies, the government aims to promote sustainable industrial growth and reduce the environmental impact of transporting raw materials over long distances.

Challenges and Considerations:

While the ban has benefited local production, it also poses challenges for the steel industry. The restriction on exports limits the market for Armenian scrap metal, potentially affecting companies’ profitability in scrap collection and export. The government must balance these challenges with the long-term benefits of a robust and self-sufficient steel industry.

Conclusion:

Armenia’s decision to extend the scrap export ban for another six months underscores its commitment to developing a solid, sustainable steel industry. By regulating scrap exports and promoting local production, the government aims to secure the raw material base, attract investments, and create jobs. This strategic move is expected to have significant economic and environmental benefits, contributing to Armenia’s steel sector’s overall growth and resilience.