EU draft waste rules raise concerns over recycled steel trade flows – BIR

  • India, Egypt and Morocco not proposed for EU metal waste authorisation
  • Africa’s growing steel output puts recycled steel demand in focus

The European Commission’s draft list of non-OECD countries that may continue to receive specified non-hazardous waste streams from the EU could have significant implications for international recycled-metal trade, according to the Bureau of International Recycling (BIR).

Under the revised Waste Shipment Regulation (WSR), exports covered by the system to non-OECD destinations will be prohibited from 21 May 2027, unless both the destination country and the specific waste stream are included on the authorised list. The draft remains under consultation until 16 October, with final country and waste-stream authorisations yet to be decided.

Metal waste remains a key concern

BIR said the proposed treatment of metal waste is a serious concern for the recycling industry. Among countries that applied to receive metal waste, Moldova, Montenegro, North Macedonia, Serbia and Ukraine are currently proposed for authorisation for certain metal streams.

Meanwhile, India, Egypt and Morocco, among other applicants, are not proposed for authorisation to receive metals, although they may appear on the draft list for other materials. BIR stressed that inclusion of a country on the broader list does not constitute blanket permission to import recycled steel.

The proposed framework could have far-reaching implications for established supply chains and steelmakers that rely on access to quality recycled material.

Egypt highlights potential trade exposure

Egypt is among the major destinations potentially affected by the proposed framework. According to BIR’s World Steel Recycling in Figures, Egypt received 1.86 mnt of recycled steel from the EU-27 in 2025. BIR said decisions affecting recycled-material trade should consider how the material is processed and used, alongside the implications for recycling, investment and lower-carbon steelmaking.

BIR is preparing a consolidated response to the European Commission in coordination with Recycling Europe and relevant authorities. It has also urged members to review the draft annex against their destinations and material codes and submit practical evidence by 12 October, ahead of the 16 October consultation deadline.

Africa’s steel growth puts recycled steel demand in focus

The proposed EU restrictions come as Africa’s steel industry continues to expand. BIR noted that African crude steel production increased 3.1% y-o-y to 29.7 mnt in 2025, even as global output declined. Rising investment in steel production and infrastructure points to a growing role for recycled steel, provided collection, processing and trade channels develop alongside demand.

However, Africa remains a highly diverse market. BIR highlighted differences across countries in demand, port capacity, access to finance, suitable material grades and national industrial policies.

Africa’s role in future trade flows

The combination of rising African steel production and potential changes to EU recycled-material trade makes the region increasingly relevant to the global recycling industry. However, the impact will vary by country. The ability to develop collection, processing and trade channels alongside growing steel demand will be critical to expanding recycled steel consumption.

Outlook

The proposed EU waste shipment framework could become an important factor for recycled steel trade flows from 2027, particularly if major destinations such as India, Egypt and Morocco remain outside the authorised metal waste streams. For the market, the key issue now is the final list of authorised countries and specific waste streams. Until those decisions are made, the extent of any impact on established EU scrap flows remains uncertain.

Meanwhile, Africa’s rising steel production and infrastructure investment could support greater recycled steel demand, but the development of collection, processing and trade infrastructure will determine how quickly this potential translates into actual market growth.