In a move aimed to open scrap exports, Saudi Arabia has reportedly imposed an export duty on non-ferrous scrap material. Although official notification could not be accessed widely, trade participants confirmed the same that the export of 5% was implemented recently wef from 15 February 24.
Market observers have indicated that following the UAE’s lead, Saudi Arabia is now contemplating imposing export duties on scrap materials for specified metals.
Rumors suggest that under HS Code 7602, a 5% export duty may be levied on various forms of aluminium scrap, encompassing food and beverage cans, automotive and truck scrap, as well as wire and cables.
Simultaneously, the export duty of 5% was introduced for scrap and alloys of copper material under HS Code 7401. Similarly, with a 5% duty on zinc scrap and powder.
Additionally, stainless steel, falling under HS Code 720421, might witness the imposition of a 5% export duty.
Of particular interest, statistics reveal that India imported approximately 155,420 t of aluminium scrap from Saudi Arabia in 2023, in contrast to 170,913 t in 2022. Meanwhile, copper imports from the same country reached 39,761 t in 2023 compared to 37,534 t during the corresponding period the previous year.
However, market participants shared that there is no export duty levied on lead and nickel yet, whereas, the current duty has affected signed contracts and shipments might be delayed under re-negotiation part to adjust this export duty.
Recently, the UAE customs implemented export duties on non-ferrous scrap. To be more specific, aluminum scrap will now have an export duty of AED 100 per ton, copper and brass scrap at AED 400 per ton, and lead at AED 300 per ton. This adjustment has resulted in a decrease in the domestic collection price of scrap as a response to the revised export duties.