Steelmakers and traders in several major scrap-importing countries continue to question the rationale behind proposed EU restrictions on exports of recycled metals, arguing that the measures could disrupt supply chains, increase costs and complicate the global steel industry's decarbonisation efforts.
The concerns follow the publication by the European Commission of a draft list of non-OECD countries that could continue receiving non-hazardous waste from the EU after May 2027 under the bloc's revised Waste Shipment Regulation. The consultation on the proposal closed on 16 October, while a final authorised-country list is expected by the end of 2026.
Industry participants speaking to Argus at the Arab Steel Summit in Egypt expressed concern about the implications for steelmakers that rely heavily on imported scrap.
"If the EU bans exports of scrap to Egypt and other non-OECD destinations they will essentially just landfill it. It is well known that what is being exported is not used by domestic mills," a European metals consultancy said.
An Egyptian steelmaker described the potential impact as "catastrophic", a view echoed by several other mills operating in the country.
Moroccan producers voiced similar concerns. According to a major steel producer, Morocco generates roughly 800,000 t/yr of domestic scrap, while steel consumption totals around 3.5mn t/yr, leaving the country heavily dependent on imported material.
Industry groups have also challenged the commission's draft proposals. The Bureau of International Recycling (BIR) has argued that excluding major importing countries such as Egypt, Morocco and India could disrupt established recycling supply chains and limit access to recycled metals. The organisation called for a reassessment of the proposed restrictions following the close of the consultation process.
Several market participants said the debate extends beyond trade policy and raises broader questions about future steelmaking feedstock availability. While electric arc furnace (EAF) technology remains central to many steel decarbonisation strategies, some countries with ambitious steel output growth plans are veering towards investing in blast furnace-based capacity amid poor generation of domestic scrap.
Participants pointed to India as an example, noting that despite plans for substantial steel production growth, new blast furnace projects continue to be announced. One conference participant said that while blast furnaces had increasingly been viewed as a technology of the past, concerns about future scrap availability were leading some producers to reassess the long-term security of metallics supply.
The debate highlights growing concerns over whether global scrap generation can keep pace with expanding EAF steelmaking capacity. Participants argued that restricting access to internationally traded scrap could increase reliance on alternative metallics sources and potentially influence future investment decisions in both EAF and blast furnace steelmaking routes.
