According to “The OECD Inventory of Export Restrictions on Industrial Raw Materials” report published by the Organization for Economic Co-operation and Development (OECD), export restrictions for critical raw materials are increasing as demand surges, driven by the green and digital transitions and rising concerns over economic security. Export restrictions on industrial raw materials increased more than fivefold between 2009 and 2023, with an acceleration in 2023 that saw a more than a doubling of the growth rate compared to 2022.
This bullish trend of restrictions reflects significant changes in the global market conditions, marked by higher geopolitical tensions and escalating competition. While Russia’s invasion of Ukraine in 2022 triggered a spike in raw material and energy prices, governments have increasingly become more assertive in managing critical resources, with export restrictions taking on a larger significance. In 2023, the restrictions imposed by China, Vietnam, Burundi, Russia, Democratic Republic of Congo, Zimbabwe, and Laos accounted for 94 percent of new export restrictions.
The report stated that waste and scrap materials remain the most frequently restricted category, often due to environmental concerns and increasing interest in circular supply chains. However, export restrictions on ores and minerals are also rising sharply. Between 2021 and 2023, 14 percent of global trade in non-waste and scrap faced at least one export restriction. “Increasing export restrictions on critical raw materials can increase prices and the risk of supply chain disruptions, undermining global growth, the expansion of renewable energy and digitalization,” Mathias Cormann, OECD secretary-general, said.