THE PROBLEM OF UNDERUTILIZATION OF PRODUCTION FACILITIES AND THE HIGH LEVEL OF IMPORTS OF REBAR PRODUCTS

The Agency for the Protection and Development of Competition conducted an analysis of the state of competition in the market of rolled reinforcement for reinforced concrete structures used in construction.

In a moderately concentrated market, 7 domestic enterprises are producing with a total design capacity of 1.8 million tons per year. At the same time, the total workload of companies does not exceed half of what is possible. TOO "Ferrum Vtor" with a design capacity of 200 thousand tons, loaded by 20%, Sin Yuan Steel LLP (Sin Yuan Steel) with a design capacity of 250 thousand tons, loaded by 10%. JSC "Qarmet" is fully loaded, LLP "Evraz Caspian Steel" with a design capacity of 450 thousand tons, loaded by 86%. The activities of two large market entities Casting LLP and TOO KSP Steel with a total design capacity of 500 thousand tons per year have been suspended.

The import dependence of the domestic market is 53%.

The low workload is due to the export of scrap to neighboring countries, where the cost is 30% higher. The ban leads to a reduction in the volume of scrap collection, which in turn reduces the workload of enterprises.

In this regard, in order to increase the volume of scrap collection, the Agency proposes to stimulate the activities of scrap collectors through the tools of the ROP Operator.

The relevant recommendations and the draft roadmap have been sent to the Ministry of Industry and Construction.

More information about the analysis can be found here: https://www.gov.kz/memleket/entities/zk/documents/details/613067 ?lang=ru