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India seeks EU scrap export relief as curbs threaten trade pact gains

Published by Global Banking & Finance Review

Posted on June 29, 2026

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· Last updated: June 29, 2026

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India Seeks Scrap Export Relief from EU as Metal Trade Faces New Curbs

By Manoj Kumar and Neha Arora

India's Request for Export Relief Amid EU Metal Scrap Regulations

NEW DELHI, June 29 (Reuters) - India has asked the European Union for relief from planned 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, industry and government officials said.

EU’s Revised Waste Shipment Regulation

From May 2027, the EU's revised waste shipment regulation is set to bar exports of non-hazardous waste to countries outside the OECD group of mostly developed economies, unless the EU approves them by November 2026.

Additional Measures on Aluminium Scrap

The European Commission is also considering separate measures to limit aluminium scrap exports in plans delayed until September, EU industry sources said last week.

Impact on Indian Steelmakers

"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," said Pankaj Chadha, chairman of the Engineering Export Promotion Council of India.

Trade Deal and Carbon Emission Levies

This year's trade deal between India and the EU is set to take effect early next year. It does not provide direct relief from EU carbon emission levies, but New Delhi expects Brussels to avoid steps that pressure industries, officials said.

India’s Formal Application and Industry Response

Industry representatives have raised the scrap curbs issue with India's trade ministry, and India has formally applied to retain access to recyclable materials under the new regime, documents reviewed by Reuters show.

Potential Relief Measures

Export quotas rather than a complete ban could be one of the relief measures, said a government official who sought anonymity as he was not authorised to speak to media.

The trade ministry did not respond to a request for comment.

India's Scrap Imports and EU Export Data

The world's second-largest crude steel producer, India imported about 366,000 tons of aluminium scrap from the EU in 2025, and was the bloc's top buyer in the first quarter of 2026, industry estimates show.

European Aluminium, which supports export curbs, said EU aluminium scrap exports hit a record 1.27 million metric tons in 2025, about 50% above 2019 levels.

Global Supply Pressures and Resource Nationalism

It said a June export ban by the United Arab Emirates could worsen supply pressures, as India sources about a fifth of its scrap from Gulf states.

The Material Recycling Association of India warned growing "resource nationalism" could disrupt supplies of aluminium, copper and other recycled metals, boosting procurement costs and fuelling competition among importing nations.

(Reporting by Manoj Kumar and Neha Arora; Additional reporting by Philip Blenkinsop in Brussels; Editing by Clarence Fernandez)

Key Takeaways

  • From May 21 2027, the EU’s revised Waste Shipment Regulation will ban export of non‑hazardous ‘green‑listed’ waste—including metal scrap—to non‑OECD countries unless these are pre‑approved by November 21 2026, a timeline India is seeking relief from (environment.ec.europa.eu).
  • The European Commission’s proposed aluminium‑scrap export limits have been postponed until September 2026, but India—a top EU aluminium‑scrap buyer—is pressing to preserve vital supply lines to its steel and aluminium sectors (marketscreener.com).
  • India imported ~366,000 t of aluminium scrap from the EU in 2025 and led EU scrap imports in Q1 2026. Industry and officials warn curbs may tighten supply, raise costs, jeopardize advantages from the India‑EU trade deal effective early next year (marketscreener.com)

References

Frequently Asked Questions

What relief has India sought from the EU regarding scrap export curbs?
India has asked the EU for relief from planned metal scrap export restrictions, aiming to secure continued access to recyclable materials under the new waste shipment regulations.
When do the new EU waste shipment regulations take effect?
The EU's revised waste shipment regulation is set to bar certain exports from May 2027, unless approved by November 2026.
How could EU scrap export curbs affect Indian industries?
Export curbs could tighten supply, raise costs for Indian steel and aluminium makers, and undermine trade pact benefits.
What volume of aluminium scrap does India import from the EU?
India imported approximately 366,000 tons of aluminium scrap from the EU in 2025 and was the EU's top buyer in early 2026.
Which issue does the Material Recycling Association of India warn about?
They warn that 'resource nationalism' could disrupt metal supplies, boost costs, and increase competition among importing nations.

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