The head of Kazakhstan’s Cement and Concrete Producers Association (QazCem), Erbol Akimbayev, has accused Uzbekistan of introducing a confidential order that effectively blocks Kazakh cement exports, according to local media.
It is alleged that in July the Uzbekistan cabinet issued a directive setting a minimum customs valuation of US$300 per tonne for imported cement from Kazakhstan - a 10-fold increase from the average market price of around US$30 - thereby making it impossible for Kazakh cement producers to export profitably.
“As a result, in August, imports of Kazakh cement to Uzbekistan dropped to zero for the first time in seven years,” said Mr Akimbayev. “At that price, no one in Uzbekistan will buy it. But if Uzbekistan acts this way, Kazakhstan has every right to introduce reciprocal measures.”
Although he was unable to present any evidence of the order he cited a photo shown to him by a border customs officer. QazCem has commenced consultations with Kazakh government agencies and industry partners to assess possible responses.
Uzbekistan has long been a steady customer of the Kazakh cement industry and is also one of the region’s largest construction markets. Mr Akimbayev suggested the move was intended to shield local producers amid domestic oversupply, but warned that Kazakhstan may take retaliatory measures.
