India urges EU to reconsider metal scrap export restrictions

India urges EU to reconsider metal scrap export restrictions

India has requested the European Union to reconsider its proposed restrictions on metal scrap exports.

The move comes as steel and aluminum producers have warned that curbs, which are set to come into effect in May 2027, could lead to supply shortages and increased costs.

The Indian government is formally seeking continued access to these crucial recyclable materials, possibly through export quotas, in a bid to protect its domestic industries and capitalize on its recent trade agreement with the EU.

EU's revised waste shipment regulation

From May 2027, the EU's revised waste shipment regulation will prohibit exports of non-hazardous waste to countries outside the OECD group of mostly developed economies. The European Commission is also considering separate measures to limit aluminum scrap exports, plans that have been postponed until September.

India's trade ministry receives concerns

The trade deal between India and the EU is expected to come into force early next year.

Although it doesn't directly provide relief from EU carbon emission levies, New Delhi expects Brussels to avoid measures that could pressure industries.

Industry representatives have raised concerns over scrap curbs 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.