The UAE’s Ministry of Economy has recently announced the temporary ban on exports of ferrous waste, which includes steel scrap, for a period of four months effective from May 15, SteelOrbis has learned. The decision is aimed at protecting and supporting local steelmakers and at diminishing the impact of Covid-19 on their activities.
At the same time, the initiative is expected to have a heavy negative impact on India’s scrap market since the UAE tops the list of the suppliers to this destination. According to customs data, the UAE supplies over 1 million mt of scrap per year to India, whereas the country’s total import volume is above 5 million mt annually.
Market sources indicate that India’s scrap importers have been caught unawares by the UAE’s decision and that there is still no clarity on whether contracts concluded before May 15 will be performed or not. However, there is information about at least one recent deal being cancelled, following the scrap export ban. Import scrap prices are expected to surge in India as buyers will be looking to compensate for missing volumes, while the trade with alternative suppliers, the US in particular, has been limited due to the pandemic, SteelOrbis understands.
