India’s steel and aluminium sectors are lobbying against EU plans to curb metal scrap exports under tighter waste shipment rules from 2027.
As a non‑OECD country, India risks losing a key source of high‑grade ferrous and aluminium scrap unless it secures an exemption by November 2026
A move seen as crucial to preventing higher costs and protecting the value of the new India‑EU trade pact.
India has officially requested the European Union to grant an exemption from its proposed restrictions on metal scrap exports, as steel and aluminium manufacturers caution that such measures could constrain supply, increase costs, and erode the anticipated benefits of the forthcoming India-EU trade agreement, a report by Reuters said.
Starting May 2027, the EU’s updated waste shipment regulation will prohibit the export of non-hazardous waste, including metal scrap, to countries outside the OECD group of mainly developed economies, unless these destinations receive EU approval by November 2026.
1 June 2026
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Since India is not a member of the OECD, it risks losing access to a vital raw material supply chain if the exemption is not approved in time.
What Is At Stake For Indian Industry
The EU is one of India’s most important suppliers of high-grade ferrous scrap, a crucial raw material for the country’s steel producers.
India imported around 366,000 tonnes of aluminium scrap from the EU in 2025 alone, making it the bloc's top buyer in the first quarter of 2026, according to the report.
In 2025, EU exports of aluminium scrap reached an all-time high of 1.27 million metric tonnes, representing an increase of about 50% compared with 2019 levels.
The European Commission is also separately considering measures to limit aluminium scrap exports specifically, with a decision on those plans delayed until September, the Reuters report added.
Supply pressures may intensify due to factors in other regions. A June export ban imposed by the United Arab Emirates, which provides roughly one-fifth of India’s scrap, has already started to constrict the market.
India's Response And The Trade Pact Dimension
Industry representatives have brought the issue of scrap restrictions to the attention of India’s commerce ministry, and India has officially requested continued access to recyclable materials under the new framework. Export quotas, instead of an outright prohibition, may be among the potential relief options.
The matter holds increased diplomatic significance as the India-EU trade agreement is expected to come into force early next year.
Although the deal does not explicitly cover carbon emission charges, New Delhi anticipates that Brussels will refrain from measures that could place undue strain on Indian industries, as per the report.
If introduced without exempting India, the scrap restriction could undermine the economic logic of the trade agreement just as it takes effect.
