Uzbekistan Creates Project Office to Tackle Shadow Metal Trade
The Uzbek government is establishing a special project office to regulate the domestic ferrous metallurgy market and combat illicit scrap metal trading.
President Shavkat Mirziyoyev announced the initiative during an industry development meeting, ordering the new regulatory body to become operational within a month.
To support the office’s oversight capabilities, authorities will launch a real-time electronic monitoring platform called E-lom in August. The system will track all ferrous metal transactions to promote market competition, stabilise prices and tighten industry control.
The project office will conduct daily analyses of the metal sector. Its mandate includes tracking raw material supply and demand, monitoring finished product inventory and implementing digital passports for metal goods.
The regulatory push targets a significant shadow economy within the country’s scrap metal supply chain. Government data presented during the meeting revealed that while the Bekabad metallurgical plant legally receives 700,000 tonnes of ferrous scrap annually, an estimated 500,000 tonnes remain in unregulated circulation.
Currently, the Bekabad facility relies heavily on foreign inputs to maintain operations. The plant produces 60% of its rolled metal from imported raw materials and just 40% from secondary scrap metal. By capturing the illicit scrap market, officials hope to improve domestic supply chains and reduce reliance on imports.
