India has requested the European Union for an exemption from proposed restrictions on metal scrap exports, as steel and aluminium producers caution that the action could restrict supplies, increase costs, and jeopardize benefits from a trade agreement, according to reports.
Starting in May 2027, the EU's updated waste shipment regulation will prohibit the export of non-hazardous waste to nations outside the OECD group of primarily developed economies, unless they receive EU approval by November 2026.
Sources from the EU industry indicated last week that the European Commission is contemplating different measures to restrict aluminium scrap exports, with plans postponed until September.
Pankaj Chadha, chairman of the Engineering Export Promotion Council of India, states that the “EU is a major provider of premium ferrous scrap to India, and any export restrictions may limit supply and increase expenses for local steel producers."
The trade agreement between India and the EU is scheduled to come into effect early next year. While it doesn't offer immediate relief from EU carbon emission taxes, New Delhi anticipates that Brussels will refrain from actions that burden industries, according to reports.
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Industry stakeholders have brought the scrap restrictions matter to India's trade ministry, and India has officially requested to maintain access to recyclable materials under the new regulations, as per reports.
India, the world's second-largest producer of crude steel, brought in approximately 366,000 tons of aluminum scrap from the EU in 2025 and was the leading purchaser from the bloc in the first quarter of 2026, according to industry estimates.
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European Aluminium, backing export restrictions, reported that EU aluminium scrap exports reached a record 1.27 million metric tons in 2025, roughly 50percent higher than 2019 figures.
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The Material Recycling Association of India cautioned that increasing "resource nationalism" could interrupt the supply of aluminium, copper, and other recycled metals, raising procurement expenses and intensifying competition among importing countries.