India to seek EU nod for scrap imports under new waste shipment rules

India is prepared to seek approval from the European Commission to import scrap from Europe under the EU's new Waste Shipment Regulation, Material Recycling Association of India President Sanjay Mehta said at the International Material Recycling Conference in Jaipur on Jan. 29.

"As MRAI and the government of India, we are trying our level best to follow the guidelines of the EU's Waste Shipment Regulation," Sanjay Mehta said. "And we shall file our papers in the next two weeks' time. It is a concern for all of us, and as an association, we are seeing what can be done to minimize the damage in times to come."

According to the revised Waste Shipment Regulation, importers in non-Organization for Economic Cooperation and Development countries, such as India, must request authorization from the European Commission to import EU non-hazardous waste, including ferrous scrap, for recovery by Feb. 21, 2025. Failure to receive approval could prevent Indian importers from procuring ferrous scrap from the EU starting May 21, 2027.

The government has directed MRAI to collate data about the grades of scrap India would need to import from Europe, said MRAI Vice President Zain Nathani at the conference.

Nathani said the Indian government, along with other non-OECD countries such as Bangladesh, plans to submit a list of scrap materials that need to be sourced from the EU by Feb. 15.

The EU will publish a first list of authorized countries by Nov. 21, 2026, and exports to non-OECD countries not on the list will be prohibited.

"India must send an application to the European Commission by Feb. 21 specifying each recycled material they want to receive from the EU and demonstrating that they treat these materials in an environmentally responsible manner," Bureau of International Recycling President Susie Burrage said at the conference.

Facilities receiving EU waste must be licensed and must have undergone a third-party audit.

Documents for each shipment will need to be digitized and uploaded to a new online portal, which will be hosted by the EU and will serve as an online platform for exchanging data for all shipments made from the EU.

Reliance on Europe

India is heavily reliant on ferrous scrap imports, with Europe being a major supplier.

The EU27 countries exported 6.09 million mt of ferrous scrap to India over January-November 2024, down from 6.17 million mt in the same period in 2023, according to Eurostat.

Data from the Indian commerce ministry shows that India purchased 8.61 million mt of ferrous scrap over January-November 2024.

Platts, part of S&P Global Commodity Insights, assessed the price of imported containerized shredded scrap at $370/mt CFR Nhava Sheva on Jan. 29, unchanged day over day.

While some market participants have been concerned about the regulation's impact on supplies, others remain positive about India's not being affected by them.

"The [waste shipment] regulation is not a ban," said Paul Bodkin, commercial general manager at European Metal Recycling. "The regulation is correct, and we all need to work together to make sure we are pushing hard from both our perspective and India's perspective in pushing the right people and getting all ticked off correctly."

A peace deal between Israel and Gaza could lower container freight rates, which might smooth the outflow of scrap from the UK and Europe, Bodkin said.

Container ships from the UK and Europe have been rerouted to sail via the Cape of Good Hope due to attacks on merchant ships in the Red Sea, resulting in a surge in freight rates.

Container freight rates from the UK to India were heard around $1,450-$1,600/TEU, equivalent to $52.72-$58.18/mt, including inland haulage charges, according to a market source on Jan. 28.