In response to a supply shortage, Israel has announced plans to restrict scrap metal exports, aiming to bolster domestic availability and support local industries.
The decision comes as Israel faces a shortage of scrap metal, a crucial raw material for various sectors including construction, manufacturing, and infrastructure development. With the restriction on scrap exports, Israeli authorities aim to ensure a steady supply for domestic consumption, preventing potential disruptions to key industries reliant on recycled materials.
The steel industry has been grappling with an annual shortage of hundreds of thousands of tonnes of steel scrap, a situation that worsened during the Gaza conflict.
Despite Ankara’s embargo on Israel due to the ongoing conflict in Gaza, approximately 90% of Israeli scrap metal exports have been destined for the Turkish steel industry. However, the scarcity of scrap materials has prompted Israel to take action. While Israeli officials maintain that the new export quotas are unrelated to Türkiye’s restrictions, the timing suggests otherwise.
Türkiye’s Ministry of Commerce had previously restricted exports of 54 product groups, including rebar, wire rod, and flat steel products to Israel. The move to limit scrap exports is expected to have implications for both countries’ steel industries. Israel’s scrap exports have played a significant role in meeting Türkiye’s demand, and any disruption could impact production and supply chains.
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