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EU Drops 15% Scrap Duty, But a Bigger Threat Looms for Indian Aluminium Trade
The immediate risk of a 15% EU export duty on aluminium scrap is gone, dropped to protect a wider trade deal with India. But for Indian buyers and sellers, the relief is temporary. The EU is now shifting its focus to a powerful new weapon: the Waste Shipment Regulation (WSR), which could block scrap flows to India from May 2027.
What Just Happened?
The European Union has officially abandoned its plan to impose a 15% export tax on aluminium scrap. Sources confirm the decision was made to avoid complicating the final stages of a major free trade agreement with India, which is expected to be signed by December. India is a massive buyer, accounting for roughly one-third of the EU's total aluminium scrap exports.
However, the EU's goal remains the same: to keep more secondary raw materials for its own industries. Instead of a tax, it will now use its strict environmental laws to control scrap exports.
The Real Threat: The Waste Shipment Regulation (WSR)
The bigger story is the EU's Waste Shipment Regulation. From May 21, 2027, it will be illegal to export non-hazardous waste (including metal scrap) to any non-OECD country unless that country has proven it can manage the material in an "environmentally sound manner" and gets specific approval from the EU.
India is not an OECD member. According to recent reports on a draft list, India, along with other major buyers like Malaysia and Thailand, currently does not meet the EU's requirements for metal waste. While this list is not final, it signals a serious risk that direct EU-to-India scrap shipments could be halted. The final list of approved countries is expected by November 2026.
What This Means for Your Business: Winners & Losers
This is not just a policy change; it is a fundamental shift in the scrap trade. Here’s how it affects you.
For Buyers (Importers & Recyclers): Prepare for a New Reality
- Supply Under Threat: Your most reliable source of high-grade scrap could be cut off. If India is not on the approved list, you will not be able to import directly from the EU after May 2027.
- Compliance is King: Price is no longer the only factor. Your ability to prove you are a compliant, environmentally sound recycler will determine if you can even access this material in the future. Start documenting your processes now.