India Seeks Relief From EU Scrap Export Curbs Amid Supply Concerns

New Delhi, Jun 29 (KNN) India has sought relief from the European Union’s (EU) proposed curbs on metal scrap exports, as steel and aluminium makers warn the move could tighten supplies, raise costs, and undermine gains from a trade pact, according to industry and government officials.

The EU's revised waste shipment regulation, set to take effect from May 2027, will bar exports of non-hazardous waste — including recyclable metal scrap — to countries outside the Organisation for Economic Co-operation and Development (OECD), unless the EU grants specific approvals by November 2026. 

India, not being an OECD member, stands to lose access to a key source of high-quality ferrous and non-ferrous scrap.

India has formally applied to retain access to recyclable materials under the new regime, according to documents reviewed by Reuters. Industry representatives have separately raised the issue with the trade ministry. 

The European Commission is also considering separate measures to limit aluminium scrap exports, with the plans now delayed until September, EU industry sources said last week, raising additional uncertainty.

Pankaj Chadha, Chairman, EEPC India, said, "The EU is a key supplier of high-quality ferrous scrap to India and any ​export curbs could tighten supply and raise costs for domestic steelmakers," as quoted by Reuters.

A government official, speaking on condition of anonymity, told Reuters that export quotas, rather than an outright ban, could be among the relief measures under consideration. The trade ministry did not respond to a request for comment.

Trade Deal Context

The India-EU trade agreement concluded earlier this year is expected to come into force early next year. While the pact does not offer direct relief from EU carbon levies, New Delhi expects Brussels to refrain from unilateral steps that place additional pressure on Indian industry, officials said.

Scale of Dependence

India, the world's second-largest crude steel producer, imported approximately 3.66 lakh tonnes of aluminium scrap from the EU in 2025 and was the bloc's largest buyer in the first quarter of 2026. 

European Aluminium, which backs the export restrictions, said EU aluminium scrap exports hit a record 1.27 million metric tonnes in 2025 — roughly 50 per cent above 2019 levels.

Rising Resource Nationalism

The situation is further complicated by a separate export ban imposed by the United Arab Emirates in June, which could compound supply pressures given that India sources approximately one-fifth of its scrap from Gulf states.

The Material Recycling Association of India cautioned that rising "resource nationalism" risks disrupting supplies of aluminium, copper, and other recycled metals, driving up procurement costs and intensifying competition among importing nations.

(KNN Bureau)