The Ministry of Economy is pushing for legislative changes to restrict the export of scrap iron, a crucial resource for Israel's steel industry. According to the Economy Ministry, the steel sector consistently faces a shortage of hundreds of thousands of tons of scrap metal annually.
The shortage intensified during the war in Gaza due to various factors, including a decline in scrap metal collection events and the suspension of tenders for its sale.
Despite this, scrap metal continues to be exported, partly because Israel has stringent environmental regulations for acquiring and processing such raw materials, making it more profitable to export to countries with less stringent standards.
In an explanation accompanying the temporary order, the Ministry of Economy underscores that while international trade agreements typically prohibit imposing quantitative restrictions on import or export, temporary measures can be implemented to prevent shortages of essential products for the exporting country.
The Ministry of Environment proposes implementing export quotas for metals, considering the needs of Israeli industry. During the period of the new regulations, the Ministry of Economy plans to establish an interdepartmental coordination commission. The steel market in Israel is estimated to be around 2 million tons annually, largely reliant on imports.
