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| EU scrap export restrictions |
The European Commission proposed strict EU scrap export restrictions targeting non-OECD nations under updated waste regulations. European regulators released a draft list on September 18 excluding major steelmaking scrap importers. Consequently, key markets like Egypt, Morocco, India, Pakistan, and Bangladesh face complete bans on EU scrap shipments. Industry stakeholders have until October 16 to submit public comments on these proposed trade rules.
Impact on Global Ferrous Scrap Trade Flows
European scrap shipments to non-OECD steelmakers grew rapidly prior to these proposed EU scrap export restrictions. For instance, Egypt imported 1.86 million tonnes of European ferrous scrap in 2025. Meanwhile, Moroccan buyers increased scrap imports by 77 percent to 340,000 tonnes. Therefore, sudden trade barriers will severely disrupt established international raw material supply networks.
European Decarbonization and Industry Reaction
European policymakers designed these export constraints to retain domestic scrap for low-carbon steelmaking. The measure aligns with the Carbon Border Adjustment Mechanism to enhance domestic steel industry competitiveness. In contrast, Recycling Europe strongly condemned the policy for unfairly penalizing non-hazardous metal scrap. As a result, unauthorised metal scrap exports to excluded nations will stop starting May 21, 2027.
ScrapInsight Commentary
These proposed export restrictions will trap high-quality secondary ferrous metal within the European market, putting downward pressure on local scrap prices. Conversely, steel producers in South Asia and North Africa will experience severe feedstock deficits, forcing them to source costlier domestic or alternative scrap. Ultimately, this protectionist shift accelerates the fragmentation of global recycling supply chains under the umbrella of environmental decarbonization.
