Despite a global downturn in steel production and a 20% average drop in steel prices, Kazakhstan has emerged as a standout performer in 2024, achieving an 8th-place ranking worldwide with a 6.5% increase in production. This growth contrasts sharply with the global trend, where steel output fell by 0.8%, according to the World Steel Association. Major producers like China, the United States, Japan, and Russia recorded declines, while countries such as the UK, Argentina, and Pakistan saw even steeper drops.
The global steel crisis has forced several major plants to halt operations, including Hyundai Steel’s Pohang-2 in South Korea, Acerinox in Spain, and Huachipato in Chile, which closed after 74 years of operation. Similarly, facilities in the US and Portugal have been temporarily idled.
Kazakhstan’s success is attributed to strategic investments in domestic raw materials and the expansion of production at the Qarmet metallurgical plant. Yerbol Ismailov, Managing Director of Qarmet, highlighted that the company’s growth was anticipated, driven by $3.5 billion in investmentsand a focus on modernization. Qarmet produced over 3.5 million tons of steel in 2024, a 15% increase from the previous year, with plans to reach 5 million tons annually by 2028.
However, challenges remain. Competing with China and Russia, which offer lower production costs, has been difficult. Qarmet has addressed this by reducing operational costs by 23.5%, lowering the price per ton of slab from 440∗∗to∗∗320, with a target of $280. The company has also implemented anti-corruption measures, digitized operations, and optimized procurement processes to enhance efficiency.
Despite rumors of financial instability, Qarmet has invested heavily in worker safety, digitalization, and waste management, underscoring its commitment to sustainable growth.
