India is preparing to seek approval from the European Commission to continue importing ferrous scrap under the EU’s revised Waste Shipment Regulation (WSR), according to Material Recycling Association of India (MRAI) President Sanjay Mehta. The announcement was made at the International Material Recycling Conference in Jaipur on January 29, 2025.
Regulatory Compliance and Deadline
- Non-OECD countries, including India and Bangladesh, must request authorization to import EU non-hazardous waste, such as ferrous scrap, by February 21, 2025.
- Failure to secure approval could halt ferrous scrap imports from May 21, 2027.
- The Indian government has instructed MRAI to compile a list of specific scrap grades required from Europe.
- The first list of authorized countries will be published by November 21, 2026.
- Only licensed facilities with third-party audits will be permitted to handle EU scrap.
Digitization of Documentation
- The EU will introduce a new online portal to facilitate electronic documentation and data exchange for all waste shipments.
India’s Dependence on European Ferrous Scrap
- The EU27 exported 6.09 million metric tons (mt) of ferrous scrap to India between January and November 2024, slightly lower than 6.17 million mt in 2023 (Eurostat data).
- India imported a total of 8.61 million mt of ferrous scrap in 2024, per the Indian Commerce Ministry.
- Platts assessed the price of imported containerized shredded scrap at $370/mt CFR Nhava Sheva as of January 29.
Market Reactions and Logistics Challenges
- European Metal Recycling’s Paul Bodkin clarified that the WSR is not a ban but a regulatory measure to ensure environmentally responsible recycling.
- The Red Sea crisis has increased freight costs as vessels reroute via the Cape of Good Hope.
- Container freight rates from the UK to India range between $1,450-$1,600 per TEU, equivalent to $52.72-$58.18 per mt, as of January 28.
- A peace deal between Israel and Gaza could lower freight rates, easing scrap shipments from Europe to India.
While India’s ferrous scrap supply chain faces regulatory and logistical challenges, industry stakeholders remain optimistic about securing EU approval and ensuring a stable supply of scrap materials in the coming years.
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Source: S&P GLOBAL