The European Commission's proposed restrictions on metal scrap exports to non-OECD countries are facing renewed opposition, this time on legal grounds. According to a legal opinion prepared by the law firm Okl & Partner on behalf of the German associations BVSE (Bundesverband Sekundärrohstoffe und Entsorgung) and the Circular Metal Association (CMA), the measures proposed by Brussels could violate EU law and undermine the competitiveness of the European recycling industry. The objections focus on the criteria adopted by the Commission to restrict exports of ferrous and non-ferrous scrap to numerous non-OECD countries. According to the legal opinion, the proposed restrictions raise several legal concerns and may conflict with certain provisions of the EU Waste Shipment Regulation (Regulation (EU) 2024/1157).
As previously reported by SteelOrbis, the proposal had already raised concerns among German recycling market participants over the risk of oversupply in the European market and the resulting downward pressure on scrap prices. Under the new regulatory framework, from May 21, 2027, exports of certain categories of non-hazardous waste to non-OECD countries will only be permitted to destinations included in the European Commission's list of authorized countries.
Associations question legality of proposed restrictions
According to the legal opinion, the criteria adopted by the European Commission to restrict metal scrap exports contain several inconsistencies with the existing regulatory framework. The main objection concerns the Commission's reliance on environmental risks associated with the presence of heavy metals to justify excluding certain scrap categories from authorized exports. The associations point out that Article 39 of the EU Waste Shipment Regulation already establishes restrictions on exports of hazardous waste to non-OECD countries, while the proposed list concerns only waste classified as non-hazardous. BVSE and CMA therefore argue that Brussels is applying assessment criteria that are inconsistent with the regulatory classification of the materials concerned.
Another point of contention is the proportionality of the proposed measures. The two associations note that the regulation already requires independent audits of receiving facilities to verify compliance with EU environmental standards, making additional blanket restrictions unnecessary in their view.
The legal opinion also challenges the application of broad restrictions to different scrap categories without adequately considering their respective environmental characteristics. In support of this argument, the associations refer to the classification of certain metal waste under the so-called "Green List", which recognizes their low hazard potential, as well as the Basel Convention's technical guidelines on metal recycling. According to the associations, these regulatory and technical references have not been sufficiently taken into account by the Commission in developing the proposed restrictions.
Risks for European scrap market and potential legal action
From an economic perspective, BVSE and CMA warn that export restrictions could further exacerbate the imbalance between scrap supply and demand in the European market. According to the associations, European industry currently lacks sufficient capacity to absorb all the scrap collected and processed within the EU, making international markets an essential outlet for the sector. Restricting access to these markets could therefore lead to oversupply, put downward pressure on scrap prices and undermine companies' profitability, ultimately discouraging investment in collection and recycling activities. The two organizations also emphasize that the competitiveness challenges facing the European steel industry should be addressed by tackling energy costs, production conditions and investment incentives, rather than restricting access to international sales markets. Similar concerns have also been raised by the Bureau of International Recycling (BIR), which on October 19 called on the European Commission to reconsider the proposed restrictions and their underlying justifications. The organization also requested an extension of the public consultation period to allow the countries concerned to submit additional information in support of their applications for authorization.
In light of these concerns, BVSE and CMA are urging Brussels to revise the draft and include all countries meeting the requirements of the EU regulation among the authorized destinations. The associations have also stated that they may consider legal action if the list is adopted in its current form.
The final list of authorized non-OECD countries is expected to be published by November 21, 2026, while the new export regime will apply from May 21, 2027.
