Uzbekistan plans to introduce an export duty on copper wire to encourage the production of higher value-added products.
Davron Vakhabov, Chairman of the Chamber of Commerce and Industry, said that the country processed up to 200,000 tons of copper raw materials annually.
The state currently provides domestic producers with a 4% discount on the market price of copper at Almalyk Mining and Metallurgical Combine (AGMK), allowing them to purchase raw materials at an average of $8,600-8,700 per ton and export higher value-added products at $11,000-12,000 per ton.
“However, some businesses export products as simple copper wire. This harms the reputation of our copper producers in the global market. Entrepreneurs who have invested $50-80 million proposed introducing an export duty on copper wire. This would encourage other businesses to develop production of higher value-added products,” Vakhabov said.
He noted that in the first eight months of this year, 71,000 tons of copper products were sold with the discount, of which 36,000-37,000 tons were exported as simple copper wire.
Wire exporters use small smelting furnaces costing $300,000-500,000 to process raw materials and ship products abroad, which prevents large enterprises, which invested $30-40 million, from operating at full capacity.
President Shavkat Mirziyoyev supported the introduction of the export duty on copper wire, emphasizing that it would allow finished products to be exported at $11,000-11,500 per ton and reach European and U.S. markets.
Additionally, the President approved extending the copper product discount for three more years, provided full payment was made to AGMK.
An additional $100 million will be allocated for buyers on the commodity exchange, which, according to Vakhabov, will ensure transparency of transactions and create equal competitive conditions between producers of simple wire and higher value-added products. (UzDaily)