22-04-2025
Regulation key to protect recycling sector in Oman
MUSCAT, APRIL 22
Amid growing concerns over resource constraints and market distortions in Oman's aluminium recycling sector, Mohammad Azam, CEO of Silver Star Copper & Aluminum Smelting LLC, has called for urgent regulatory reforms to safeguard the future of the industry and encourage long-term investment.
Speaking on the sidelines of the Aluminium Recycling Forum, Azam highlighted the strategic importance of feedstock security and a fair competitive environment, warning that unregulated market activity could jeopardize the viability of serious industrial players.
'We currently operate one of the most advanced facilities in the sector, but we are facing a serious material shortage,' Azam said. 'This isn't just a logistical issue—it's a strategic threat. Without access to raw materials, we cannot fully utilize our production capacity or justify further investment, even though we are ready and committed.' Silver Star, one of Oman's leading recyclers, has invested heavily in advanced technology and skilled labor to deliver high-value aluminium products. However, inconsistent access to recyclable material remains a key obstacle.
Azam also expressed concern over the rise of small-scale operators entering the market without proper licensing or regulatory oversight.
'Some are setting up unregulated furnaces, and if this continues unchecked, it will be difficult for serious players like us to survive, let alone scale,' he warned. 'We are not against competition—on the contrary, we welcome it. But it must be under clear and fair regulatory frameworks.' He emphasized that informal operators often fail to create jobs or contribute meaningfully to the national economy, while potentially undermining pricing structures and operational standards in the market.
'Large industrial recyclers like us are creating real value, driving innovation, and contributing to Oman's economy,' Azam noted. 'We cannot allow the aluminium sector to go the same way as the global steel industry, where unregulated recyclers have distorted the market with little accountability.' In addition to material shortages, Silver Star is also contending with volatile scrap pricing—exacerbated by under-declared exports and inconsistent enforcement of customs regulations.
'We're not just collecting scrap—we're manufacturing high-value aluminium products. That requires pricing stability and reliable access to input materials,' he said. 'Exporters who send scrap abroad without proper declarations enjoy an unfair advantage, which undermines domestic recyclers like us.' Azam noted growing interest from international clients, particularly in Japan, who are seeking high-quality aluminium products from Oman. However, inconsistent supply and market unpredictability remain barriers to long-term commercial contracts.
'Oman's local market is not yet aligned with international pricing dynamics,' he added. 'We must address these discrepancies if we want to position ourselves as a reliable global supplier.' In closing, Azam issued a clear appeal to government authorities to take decisive steps in protecting and enabling the future of Oman's aluminium recycling sector.
'We urge the government to take firm action. If we want to attract large-scale, job-creating investment, we must ensure proper regulation, protect serious investors, and align our market with global standards,' he said. 'The future of Oman's aluminium recycling sector depends on it.'
