Source: Argus Media
The European Commission has published a draft list of non-OECD countries authorised to import ferrous scrap from the EU after May 2027, and several major importing nations are conspicuously absent. Egypt, Morocco, India, Pakistan, and Bangladesh — all significant buyers of European ferrous scrap — are not currently on the approved list, raising concerns across the global steelmaking supply chain.
The Bureau of International Recycling (BIR) has warned that the draft delegated act under the EU Waste Shipment Regulation could seriously disrupt global recycling markets and urged governments and industry associations to submit evidence during a public consultation running until October 16. The restrictions, if adopted, would force major scrap-importing countries to find alternative supply sources or reduce their scrap-based steelmaking capacity.
Among the most exposed are Morocco and Egypt, whose steelmakers rely heavily on scrap-based electric arc furnace production and export finished steel back to the EU. A Moroccan mill warned that restricting EU scrap imports could undermine the bloc's own decarbonisation objectives by making lower-emission steelmaking more difficult in neighbouring regions. Egypt imported 2.89 million tonnes of EU-origin ferrous scrap in 2025, accounting for nearly 80 percent of its total scrap imports.
South Asian importers are comparatively less dependent on EU supply. India has a highly diversified supplier base, sourcing material from the US, UAE, Australia, and Asia. Bangladesh has already shifted almost entirely away from European scrap, turning instead to Japan, which supplied 1.36 million tonnes in 2025, up from 383,000 tonnes in 2022.
If the restrictions take effect, scrap that can no longer be exported to affected markets would need to find alternative outlets, potentially increasing availability within the EU and in other accessible export markets such as Turkey. The outcome of the consultation period will be closely watched by steelmakers and recyclers worldwide.
