Ferroalloys stand out
In 2020, the foreign trade turnover of Aktobe region will reach 2.7 billion U.S. dollars. Compared with 2019 (US$3.2 billion), this figure is down 15.6%. Such data is provided by the National Bureau of Statistics. As Sharkhan of Iran, the head of the Aktobe region’s Ministry of Industry and Innovation and Development, said in an interview with a reporter from the Kapital.kz Business Information Center, oil traditionally ranks first in the region’s export list. Due to the pandemic, the focus has changed, and ferroalloys are also among the best.
-According to statistics, Iran’s Shakhranovich’s oil exports fell by nearly a third. Considering that the Aktobe region is an oil-producing region, has it greatly affected its economy?
-First of all, there are natural reasons: production declines related to water injection and depletion of oil wells. In addition, Kazakhstan also cut raw material output in accordance with OPEC+’s decision. Overall, the pandemic has led to overproduction of oil and low demand for hydrocarbons. As a result, oil exports fell by nearly a third: from $719.9 million in 2019 to $498.6 million in 2020.
-This lowered the foreign trade indicator, which fell by 15.6% in 2020?
-Let us understand today’s reality objectively. In the Aktobe region’s economy, hydrocarbons account for a large share. As a result, falling oil prices, declining demand and reduced production have had a negative impact on export performance. Moreover, due to the ongoing pandemic, the closure of borders between countries has also affected the indicators. The number of countries participating in foreign economic partnerships has been halved-from 92 in 2019 to 47 in 2020. Yes, the decline in exports in the oil sector has reduced all indicators. If you remember, the price of oil fell to $20 a barrel last year. At some point, it is usually reduced to zero. Considering that we are still an oil-producing region, this is frightening.
-Yes, but according to statistics, the industrial growth in the first quarter of this year was 7% compared to the same period last year…
-Despite the adoption of restrictive measures and the pandemic, the physical quantity index of this industry has not declined in my country. This is all due to the manufacturing industry we are currently focusing on. The Aktobe region has performed very well in this area. We are walking on the corridor of green growth. Make a comparison: As these areas are actually related to oil production, the neighbors of Mangistau and Atyrau have seen a decline in the IFO industry. In terms of manufacturing, we are confident of maintaining the ninth position of the Republic in foreign trade.
-How about the top 5 products supplied in the region abroad?
-In 2020, metals and metal products, namely ferroalloys-US$642.4 million, will become the leader in exports. This is 89.2% of the 2019 level. The main exporter is Aktobe Ferroalloy Plant of TNK Kazchrome JSC. Importers: China, Russia, Germany, the United States, the Netherlands, Ukraine and South Korea.
In terms of export demand, the second place is fuel and energy products-oil and natural gas. Last year’s foreign supply was 498.6 million U.S. dollars. This is 89.2% of the 2019 level. The main exporters are PetroChina-Aktobemunaigas JSC and Kazakh oil company Aktobe LLP.
Exports of ore and chromium, copper, and zinc concentrates amounted to US$215.8 million. Next are non-commodity products. By the way, exports in this particular field have been increasing recently. The unique enterprise of the Aktobe Chromium Compound Plant of the chemical industry supplies products to Russia, China, Belarus, Britain, Uzbekistan, Germany, and Ukraine. Exports amounted to 76.8 million US dollars.
It is worth mentioning that the domestic manufacturer Aktobe Railway Girder Manufacturing Plant. The export value of this enterprise is 15.6 million US dollars. The main importing countries are Russia, Belarus, Turkey, Uzbekistan, Georgia and Estonia.
I would like to point out that if the level of exports has dropped significantly in the past year, the volume of imports will remain roughly unchanged.
In 2020, the export value of Aktobe region is 1.6 billion U.S. dollars, and the import value is 947.7 million U.S. dollars. Compared with 2019, merchandise exports have decreased by US$500 million. At the same time, the commodity import index remained at the level of 2019, only a decrease of 1.5 million U.S. dollars. The largest trade volume in the Aktobe region fell to China-26.2% or 433.3 million US dollars, Russia-16.9% or 279.6 million US dollars, and the EU-32.7% or 540.5 million tenge.