The European Commission (EC) will announce on November 17 the results of its review of its waste transport regulations, which is expected to completely ban the export of ferrous and non-ferrous metals from the EU. Since the 20th century, the EC has been reviewing its waste transport regulations to ensure that "waste" is not exported from the EU. The current regulations on the transport of waste have been in force since 2006 and have been updated several times since then.

The EU's aim in restricting scrap exports is to ensure the local supply of key raw materials for the decarbonization process in the metals industry and for building a circular economy.

Expected impact

1. Impact of export volume: The EU is the world's largest exporter of scrap, with external exports of 22.63 million tons in 2020, much higher than the second-ranked United States (16.87 million tons) and third-ranked Japan (9.38 million tons). According to data released by BIR in November, EU scrap steel exports soared to 11.24 million tons in the first half of this year, a year-on-year increase of 49.3%, continuing to maintain the world's position as the world's largest steel exporter. Therefore, the upcoming ban may affect scrap exports.

1. Major countries affected: Turkey has been the largest destination for EU exports, with the EU exporting a total of 14.05 million tons of scrap to Turkey in 2020, accounting for 62.1% of total exports. In addition, Pakistan imported 1.943 million tons from the EU, accounting for 8.6%, and Egypt imported 1.942 million tons, accounting for 8.6%. Market participants believe that the scrap export ban may apply to countries that do not meet EU waste treatment standards, mainly non-OECD countries, in addition, in the short term, the EU may prioritize restrictions on the export of high-quality scrap, crushed steel and corner scrap, then HMS scrap will continue to flow to Turkey. Turkey's scrap imports from the EU may not change drastically, but non-OECD countries such as Pakistan, India, and other secondary buyers are more likely to be affected.

From January 1, 2021, the EU banned its member countries from exporting plastic waste to other non-OECD countries. EU scrap exports to OECD countries need to be notified in advance and agreed to by the other country; The import and export of waste within the EU will also be subject to stricter controls.

EU Commissioner for the Environment and the Sea Vikingius Virginijus Sinkevi ius said: "These new regulations make it clear that the EU is responsible for the waste it generates. The export of plastic waste is only allowed under very strict conditions. The export of unsorted plastic waste to non-OECD countries will be completely banned. This is an important milestone in the fight against plastic pollution, the transition to a circular economy and the achievement of the goals of the European Green Deal. (The European Green Deal is a series of political initiatives proposed by the European Commission whose main goals are to reduce Europe's greenhouse gas emissions and promote a circular economy.)