India advocates for softer EU restrictions on metal scrap exports to prevent supply shortages for its steel and aluminium industries as they deepen trade ties, highlighting potential repercussions for industrial decarbonisation efforts.
India has asked the European Union to soften planned restrictions on metal scrap exports, warning that tighter rules could squeeze supplies for domestic steel and aluminium producers just as the two sides prepare to put a new trade pact into effect, according to officials and industry sources.
The concern centres on the EU’s revised waste shipment regulation, which is due to take effect in May 2027 and would bar exports of non-hazardous waste, including recyclable metal scrap, to countries outside the OECD unless the bloc grants approval by November 2026. Indian officials and company representatives are pushing for continued access to those materials, with export quotas among the options being discussed, according to documents seen by Reuters and people familiar with the matter.
For India’s metals sector, the stakes are significant. Pankaj Chadha, chairman of the Engineering Export Promotion Council of India, told Reuters that the EU is a major source of high-grade ferrous scrap and that any new curbs could drive up costs and tighten supply for local mills. Industry estimates suggest India imported about 366,000 tonnes of aluminium scrap from the EU in 2025, making it the bloc’s biggest buyer in the first quarter of 2026.
The issue has also become entwined with wider trade diplomacy. India and the EU concluded a free trade agreement in January, and both sides have said they want to deepen commercial ties. But the deal does not directly address EU carbon levies, and New Delhi is wary of measures that could hurt industries it wants to expand under the new framework, officials said.
European industry groups, however, argue the bloc should keep more scrap at home. European Aluminium has said EU aluminium scrap exports reached a record 1.27 million tonnes in 2025, around 50% above 2019 levels, and has backed curbs to preserve feedstock for domestic recyclers. It also warned that a June export ban imposed by the United Arab Emirates could add to supply pressures, particularly because India sources roughly a fifth of its scrap from Gulf states.
The Material Recycling Association of India has described the trend as a form of “resource nationalism”, saying it could disrupt supplies of aluminium, copper and other recycled metals while forcing buyers to pay more and compete more aggressively for feedstock. For India’s industrial decarbonisation plans, the outcome matters well beyond trade politics: scrap availability is central to lower-emissions steelmaking and aluminium production, and any sustained constraint would complicate efforts to cut both costs and carbon intensity.
- https://www.globalbankingandfinance.com/india-seeks-eu-scrap-export-relief-curbs-threaten-trade-pact/ – Please view link – unable to able to access data
- https://www.business-standard.com/economy/news/india-seeks-eu-scrap-export-relief-as-curbs-threaten-trade-pact-gains-126062900282_1.html – India has formally requested the European Union to reconsider planned restrictions on metal scrap exports, expressing concerns that these curbs, set to commence in May 2027, could lead to supply shortages and increased costs for domestic steel and aluminium producers. The EU’s revised waste shipment regulation aims to prohibit exports of non-hazardous waste to non-OECD countries unless approved by November 2026. Industry leaders have raised the issue with India’s trade ministry, seeking continued access to recyclable materials under the new framework, potentially through export quotas instead of a complete ban.
- https://economictimes.indiatimes.com/news/economy/foreign-trade/india-seeks-eu-scrap-export-relief-as-curbs-threaten-trade-pact-gains/articleshow/132064479.cms – India has urged the European Union to reconsider planned restrictions on metal scrap exports, warning that these curbs, set to begin in May 2027, could significantly increase supply shortages and costs. New Delhi is formally seeking continued access to these vital recyclable materials, potentially through export quotas, to safeguard its domestic industries and leverage its recent trade agreement with the EU. The EU’s revised waste shipment regulation aims to bar exports of non-hazardous waste to countries outside the OECD group unless approved by November 2026.
- https://timesofindia.indiatimes.com/india/eu-metal-scrap-curbs-worry-india-ahead-of-trade-pact-could-tighten-supply-raise-costs/amp_articleshow/132065797.cms – 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.
- https://www.euronews.com/my-europe/2026/01/27/eu-inks-mother-of-all-deals-with-india-trade-agreement-amid-global-turmoil – The European Union and India have concluded a comprehensive free trade agreement, aiming to reduce tariffs on EU goods and open up sensitive sectors to appease Indian authorities. The deal is expected to double EU exports to India by 2032, with tariffs on approximately 96% of EU exports to India being cut. European carmakers are set to benefit from gradually reduced tariffs under a quota system, while sectors like machinery, chemicals, and pharmaceuticals will see near-total elimination of tariffs.
- https://www.business-standard.com/economy/news/india-eu-pact-likely-to-expand-trade-not-threaten-domestic-industry-gtri-126012500261_1.html – The Global Trade Research Initiative (GTRI) has stated that the India-EU free trade agreement, announced on January 27, is likely to lower costs and expand trade rather than threaten domestic industry. The GTRI highlighted that India and the EU are not rivals but partners operating on different rungs of the value chain, with India exporting labour-intensive, downstream, and processing-based goods, while the EU supplies capital goods, advanced technology, and industrial inputs.
- https://www.youtube.com/watch?v=V09UwB-bo3c – This video provides an overview of the India-EU trade agreement, highlighting the reduction of tariffs on automobiles, spirits, and textiles. The deal is expected to double EU exports to India by 2032, with tariffs on marine goods, leather, textiles, and European automakers being cut. The agreement aims to strengthen economic ties between the two regions amid global trade shifts.
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
8
Notes:
The article was published on June 29, 2026, and reports on India’s request to the EU regarding planned metal scrap export curbs set to take effect in May 2027. This aligns with recent developments, including the EU’s revised Waste Shipment Regulation, which entered into force on May 21, 2026. ([environment.ec.europa.eu](https://environment.ec.europa.eu/news/new-waste-shipment-regulation-and-diwass-platform-go-live-2026-05-21_en?prefLang=uk&utm_source=openai)) The article appears to be timely and original, with no evidence of being recycled from other sources.
Quotes check
Score:
7
Notes:
The article includes a direct quote from Pankaj Chadha, chairman of the Engineering Export Promotion Council of India: “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.” A search for this quote reveals it has been used in other recent articles, such as one published on June 29, 2026, by MarketScreener. ([marketscreener.com](https://www.marketscreener.com/news/india-seeks-eu-scrap-export-relief-as-curbs-threaten-trade-pact-gains-ce7f5fdedd8af625?utm_source=openai)) This suggests the quote may have been sourced from a press release or a common newswire, raising concerns about originality.
Source reliability
Score:
6
Notes:
The article is published by Global Banking & Finance Review, an online platform offering news, analysis, and opinion on banking and finance. While it covers a diverse range of topics, the platform is not a major news organisation and may not have the same editorial standards. Additionally, the article includes a disclaimer stating that the content is commissioned and should not be considered financial advice, which may affect its reliability.
Plausibility check
Score:
8
Notes:
The article’s claims about India’s request to the EU regarding metal scrap export curbs are plausible and align with recent developments. The EU’s revised Waste Shipment Regulation, which entered into force on May 21, 2026, includes provisions that could impact India’s access to metal scrap exports. ([environment.ec.europa.eu](https://environment.ec.europa.eu/news/new-waste-shipment-regulation-and-diwass-platform-go-live-2026-05-21_en?prefLang=uk&utm_source=openai)) The concerns raised by Indian industry representatives about potential supply tightness and increased costs are consistent with the implications of the new regulation.
Overall assessment
Verdict (FAIL, OPEN, PASS): PASS
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
The article is timely and original, reporting on India’s request to the EU regarding planned metal scrap export curbs set to take effect in May 2027. However, the use of a direct quote that appears in other recent articles raises concerns about the originality of the content. Additionally, the publication’s status as a non-major news organisation and the potential use of a common newswire or press release for sourcing information affect the reliability and independence of the verification sources. Given these factors, the overall confidence in the article’s accuracy is medium.
