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

India is seeking relief from EU scrap export restrictions that threaten to undermine gains from a planned trade pact, as the bloc tightens controls on waste shipments and considers separate measures to limit aluminium scrap exports. India's steelmakers and recyclers warn that export curbs could tighten supply, raise costs, and disrupt supplies of aluminium, copper, and other recycled metals, fuelling competition among importing nations.

iG
iGEN Editorial
July 8, 2026
India seeks EU scrap export relief as curbs threaten trade pact gains

India is seeking relief from the European Union's upcoming scrap export restrictions, warning that the curbs could undermine gains from a planned trade pact by tightening supply and raising costs for domestic steelmakers, according to the Economic Times.

EU Waste Shipment Regulation Tightens

From May 2027, the EU's revised waste shipment regulation will bar exports of non-hazardous waste to countries outside the OECD group of mostly developed economies, unless the EU approves them by November 2026, the Economic Times reported. Separately, the European Commission is considering measures to limit aluminium scrap exports, with plans delayed until September, according to EU industry sources.

Impact on India's Steel and Aluminium Industries

India, the world's second-largest crude steel producer, relies heavily on EU scrap. Pankaj Chadha, chairman of the Engineering Export Promotion Council of India (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." The trade ministry did not respond to a request for comment.

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, according to industry estimates cited by the Economic Times. 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.

Metric Value Source
India aluminium scrap imports from EU (2025) ~366,000 tons Industry estimates via Economic Times
EU aluminium scrap exports (2025) 1.27 million metric tons European Aluminium via Economic Times
Increase vs 2019 ~50% European Aluminium via Economic Times

Broader Supply Pressures and "Resource Nationalism"

The article also noted that a June export ban by the United Arab Emirates (UAE) could worsen supply pressures, as India sources about a fifth of its scrap from Gulf states. The Material Recycling Association of India warned that growing "resource nationalism" could disrupt supplies of aluminium, copper, and other recycled metals, boosting procurement costs and fuelling competition among importing nations.

The EU's revised waste shipment regulation, combined with potential aluminium scrap export limits and the UAE ban, could significantly affect India's access to key raw materials for its steel and aluminum sectors. Industry bodies have urged the government to secure relief from the EU to protect the benefits of the planned trade agreement.


Sources: Economic Times – Foreign Trade

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