Industry urges Centre to act on EU metal scrap list exclusion

The metal recycling industry has asked the government to raise India's exclusion from the European Union's draft list of countries authorised to receive ferrous and non-ferrous metal scrap. In a letter to the commerce ministry, MRAI said the move threatens secondary raw material availability and would hit MSME recyclers. The Commission's September 18 draft includes India but not for metal waste. Exports to non-OECD countries are barred from May 21, 2027.

Written by AI from Economic Times — Industry · not yet reviewed by an editor · Published 26 Sept 2026, 9:19 am IST

Source

Economic Times — Industry · read the original report ↗

#metal scrap#recycling#eu trade#imports#mrai

Desk check · compared with the source

What the desk checked (5)

MRAI wrote to the commerce ministry seeking intervention on India's exclusion from the EU metal scrap export list. — Attributed to MRAI letter as reported in the source; contents of the letter not independently available.
The European Commission published a draft list on September 18 of non-OECD countries authorised to import specific non-hazardous waste from the EU; India is listed but not approved for metal waste. — Figure and date appear in the source and are attributed to the European Commission's published draft.
The EU accounted for about 20% of India's aluminium scrap imports, 22% of copper and copper alloy scrap, 20% of lead scrap and 40% of zinc scrap last fiscal. — Figures appear in the source, attributed to MRAI; no underlying dataset cited.
Of about 8.45 million tonnes of ferrous and stainless-steel scrap India imported in FY26, 0.79 million tonnes came from the EU. — Figures appear in the source; FY26 reference is internally consistent with the source text but no data agency is named.
The EU will prohibit non-hazardous waste exports to non-OECD countries from May 21, 2027, with authorised-list countries exempt; responses to the draft are due October 16. — Dates appear in the source as part of the revised Waste Shipment Regulation; no direct quote from the regulation provided.

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Analysts’ view opinion

AI Economic Analyst

This is a supply-side cost story dressed up as a regulatory footnote. The EU is a genuinely material source of India's secondary metal feedstock — roughly a fifth to two-fifths of imports across aluminium, copper, lead and zinc scrap by MRAI's account — so losing authorised access from May 2027 would tighten availability and push recyclers toward pricier alternatives. The pain lands unevenly: small and mid-sized recyclers with thin margins and little bargaining power absorb it first, while primary metal producers and scrap suppliers in other geographies stand to gain.

The immediate economic risk is input cost inflation for recyclers, since scrap is a substitute for virgin metal and any squeeze in supply typically shows up in domestic scrap premiums.
MSME recyclers are the most exposed, as they lack the working capital and long-term sourcing contracts that larger integrated players use to hedge origin risk.
Ferrous exposure looks far more manageable than non-ferrous: EU-origin material was 0.79 million tonnes of about 8.45 million tonnes of ferrous and stainless scrap imported in FY26, whereas EU shares in aluminium, copper, lead and especially zinc scrap are much larger.
Greater reliance on virgin material would carry both a cost and an energy-intensity penalty, cutting against the economics that make recycling attractive in the first place.
There is a long runway — the ban starts May 21, 2027, and the draft comment window closes October 16 — which leaves room for diplomatic engagement, supplier diversification and domestic collection capacity to develop.

What to watch — Watch whether India's response by the October 16 deadline yields any change in the metal-waste authorisation, and in the meantime whether importers begin locking in alternative non-EU origins.

The story does not establish that the draft will be finalised as published, nor does it quantify the likely price or job impact — the cost and MSME concerns are the industry association's own assessment, not an independent finding.

Deep dive

Research brief · 8 facts · 3 dates · exam-ready

The brief

Context

The European Union, under its revised Waste Shipment Regulation, will bar exports of non-hazardous waste to non-OECD countries from May 21, 2027, exempting only countries on an authorised list. On September 18 the European Commission published a draft list of non-OECD countries permitted to import specific non-hazardous wastes from the EU; India features on the list but is not approved to receive metal waste. The Material Recycling Association of India (MRAI) has written to the commerce ministry seeking intervention, warning of a hit to secondary raw material supply. India is a major global importer of scrap metal, with the EU among its biggest sources.

Key facts

The European Commission published the draft list of authorised non-OECD waste-importing countries on September 18; India is included but not for metal waste.
The EU will prohibit exports of non-hazardous waste to non-OECD countries from May 21, 2027; countries on the authorised list are exempted.
The last date to submit a response to the draft list is October 16.
The EU accounted for about 20% of aluminium scrap imported into India last fiscal.
The EU supplied 22% of India's copper and copper alloy scrap, 20% of lead scrap and 40% of zinc scrap imports last fiscal.
Of around 8.45 million tonnes of ferrous and stainless-steel scrap India imported in FY26, 0.79 million tonnes came from the EU.
MRAI says the exclusion could raise raw material costs, hit MSME recyclers and increase reliance on virgin materials.
MRAI has written to the commerce ministry and also to the ministries of steel and mines.

Timeline

September 18European Commission publishes draft list of non-OECD countries authorised to import specific non-hazardous waste from the EU; India listed but not for metal waste.
October 16Last date to submit responses to the EU draft list.
May 21, 2027EU prohibition on exports of non-hazardous waste to non-OECD countries takes effect, with authorised-list countries exempt.

Who has a stake

Material Recycling Association of India (MRAI) — Industry body seeking government intervention; warns of disrupted scrap supply chains and higher costs for members.
Ministry of Commerce (and ministries of steel and mines) — Asked to take up India's exclusion with the European Commission and other appropriate authorities.
MSME recyclers — Most exposed to loss of imported EU metal scrap, facing costlier raw material and shrinking feedstock.
European Commission — Authority framing the authorised country list under the revised Waste Shipment Regulation.
Indian manufacturers using secondary raw material — Domestic end-of-life scrap cannot meet recycling demand, so import curbs push them towards virgin materials.

Why it matters

Imported metal scrap is a key secondary raw material for Indian manufacturing because domestic end-of-life scrap availability falls short of recycling demand. Losing EU scrap — which supplies a fifth to two-fifths of several non-ferrous scrap categories — could raise input costs, squeeze MSME recyclers and increase dependence on virgin, more resource-intensive materials. With the response window closing on October 16 and the export ban due in May 2027, timely diplomatic engagement determines whether India stays in the supply chain.

UPSC angle

Prelims pointers

EU's revised Waste Shipment Regulation: bans non-hazardous waste exports to non-OECD countries from May 21, 2027, with an authorised-country exemption list.
European Commission's draft authorised list was published on September 18; comments due October 16.
India is on the draft list but not approved to receive metal (ferrous and non-ferrous) waste.
MRAI (Material Recycling Association of India) is the industry body that wrote to the commerce, steel and mines ministries.
EU share in India's scrap imports last fiscal: aluminium 20%, copper and copper alloy 22%, lead 20%, zinc 40%.
India imported about 8.45 million tonnes of ferrous and stainless-steel scrap in FY26, of which 0.79 million tonnes came from the EU.

Mains framing

India's recycling economy depends heavily on imported scrap because domestic end-of-life scrap generation cannot meet recycling demand; the EU is among the largest suppliers, contributing 20-40% across aluminium, copper, lead and zinc scrap and 0.79 million tonnes of the roughly 8.45 million tonnes of ferrous and stainless-steel scrap imported in FY26. The European Commission's September 18 draft list under the revised Waste Shipment Regulation includes India for some non-hazardous waste but excludes metal waste, and from May 21, 2027 exports to non-OECD countries outside the authorised list will be prohibited. MRAI argues this would disrupt the metal scrap supply chain, raise raw material costs, hurt MSME recyclers disproportionately and push manufacturers back towards virgin materials — with implications for circular-economy and resource-security goals. The immediate way forward, as urged by industry, is government engagement with the European Commission and appropriate authorities before the October 16 response deadline, backed by demonstrating environmentally sound management standards in Indian recycling; over the medium term, strengthening domestic end-of-life scrap collection and formalising the recycling sector reduces exposure to such external restrictions.

Key terms

Waste Shipment Regulation (WSR): EU rulebook governing waste exports; its revised version bars non-hazardous waste shipments to non-OECD countries from May 21, 2027 except to authorised countries.
MRAI: Material Recycling Association of India, the industry association representing metal recyclers that petitioned the Centre.
Secondary raw material: Recycled input such as metal scrap used in manufacturing in place of virgin ore-based material.
Non-OECD country: A country outside the Organisation for Economic Co-operation and Development; India falls in this category for the EU's waste export rules.
Ferrous and non-ferrous scrap: Iron/steel-based scrap (ferrous) and scrap of metals like aluminium, copper, lead and zinc (non-ferrous).
End-of-life scrap: Scrap generated domestically when products reach the end of their usable life, currently insufficient for India's recycling demand.

Practice questions

India's exclusion from the EU's draft list of countries authorised to receive metal scrap could undermine its circular economy ambitions. Discuss with reference to the revised Waste Shipment Regulation.
Examine why imported metal scrap remains critical for Indian manufacturing and suggest measures to reduce dependence on external sources of secondary raw material.
How do trade-linked environmental regulations of advanced economies affect MSMEs in developing countries? Illustrate with the EU waste export restrictions taking effect in 2027.

Grounded only in the source report — figures and dates are the source's, not inferred.

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