How Much Is Scrap Iron and Steel in Azerbaijan?

In the past year, trading on the world iron scrap market began with $ 300 per ton. By the end of the year it was offered at the average of $ 240. However, in Azerbaijan, where the government has banned the export of scrap ferrous metals since 2001, the prices did not go up to $ 150. Experts attribute this to the monopolization of the market by LLC Baku Steel Company, which is virtually the only producer of rolled metal products in the country.

In 2012-2014, Azerbaijan imported 128.5 thousand tons of ferrous scrap. This product was designed at Azerbaijani customs for about $ 50 million. According to the State Customs Committee, in 2012, scrap iron and steel was declared at $ 395.86, in 2013 – at $ 385, and last year - $ at $345.45 per ton. It is noteworthy that in 2014 these prices were not observed in the world market. The maximum price was fixed in September - $ 335.

In 2014 Azerbaijan purchased scrap iron and steel from Kazakhstan - 17.7 thousand tons, for which the importers issued contracts worth over $ 6 million. A ton of Kazakh scrap cost $ 344, more than two times higher than crushed scrap purchased from local suppliers.

Note that a few days ago JSC Baku Underground for the first time announced an auction for the sale of 2,000 tons of scrap metal (rails type R-50). The initial price was set at 236 manat (including VAT).

Currently, scrap prices continue to decline, and as reported by http://www.metaltorg.ru/cources/scrap/, they are $ 186-213 per 1 ton.

A businessman and former member of the Milli Majlis Nazim Mammadov believes that the market for rolled ferrous metals in Azerbaijan is under the exclusive control of LLC Baku Steel Company, which enjoys the informal patronage of certain persons in state power. The low prices for scrap, the high prices for finished products, as well as the removal of unwanted competitors result from this. ----08B