ArmInfo.Armenia for the second time for six months extends the ban on the export of scrap metal. The corresponding decision was made at a government meeting on January 20.
According to the explanation to the document, by the Decree of the Government of the Republic of Armenia dated January 14, 2021 N 28-N "On the application of a temporary ban on the export of a number of goods from the Republic of Armenia", a temporary ban (for a period of 6 months) was applied a ban on the export of scrap and waste of non-ferrous metals. This was done in order to enable local industrial enterprises to develop their own production using scrap and waste of non-ferrous metals and alloys. It is noted that scrap and waste metals are a strategically important raw material for Armenia, given the fact that there are no natural reserves of ferrous metals in the country. "As for working with metal imported by industrial enterprises in the absence of local scrap and waste, in this case the cost of the products of these companies increases several times, which makes the products of the latter uncompetitive," the document says.
According to the document, the decisions was made due to the need to regulate the export of scrap and non- ferrous metal waste, develop local production, provide a raw material base, as well as stimulate the activity of the country's manufacturing industry. "After the ban came into force, the volume of local production increased significantly. In particular, according to the Statistical Committee, in January-September 2021, the volume of rolled steel amounted to more than 70 thousand tons, and according to forecasts for the current year, the figure will exceed 100 thousand tons, which is almost twice as much as last year.
It is also noted that the fears of the business that, taking advantage of the monopoly position, local factories will underestimate the prices for the purchase of scrap from assemblers, have not been confirmed. In fact, it turned out that if in 2020 the price of black scrap was 40,000 drams per ton (a little more than 80 dollars) plus VAT, this year it is already 60,000 drams (plus VAT)," the document says.
The ban is extended for 6 months, since under the agreement on the Eurasian Economic Union, restrictions on the export or import of goods by one of the countries of the union cannot be established for a longer period. The decision will come into force on January 25 and will be valid until June 25.
