EU metal scrap curbs worry India ahead of trade pact: 'Could tighten supply, raise costs'

India has urged the European Union to exempt it from proposed restrictions on metal scrap exports, warning that the move could disrupt supplies, increase production costs and affect the country's steel and aluminium industries.Under the EU's revised Waste Shipment Regulation, exports of non-hazardous waste, including recyclable metal scrap, to non-OECD countries will be banned from May 2027 unless the bloc grants approval by November 2026.Separately, the European Commission is also considering restrictions on aluminium scrap exports as part of measures expected to be unveiled later this year.India seeks exemption from new rulesIndustry representatives have raised concerns with the Ministry of Commerce, following which India formally applied to the EU seeking continued access to recyclable metal scrap under the proposed framework, according to documents reviewed by Reuters.Government officials said one possible compromise could involve export quotas instead of a complete ban, although the trade ministry has not officially commented on the matter.Steel, aluminium industry warns of supply crunchIndustry leaders have warned that restrictions on EU scrap exports could significantly tighten raw material supplies for Indian manufacturers."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," said Pankaj Chadha, Chairman of the Engineering Export Promotion Council of India.India, the world's second-largest crude steel producer, imported around 366,000 tonnes of aluminium scrap from the EU in 2025 and emerged as the bloc's largest buyer during the first quarter of 2026, according to industry estimates.The issue comes as India and the European Union prepare to implement their recently concluded trade agreement early next year.Get the latest India news and live updates. Download the TOI App.