UAE Bans Ferrous Scrap Exports Effective Today

SEATTLE (Scrap Monster): The United Arab Emirates (UAE) announced temporary suspension of exports of ferrous scrap and recovered paper, reported the Bureau of International Recycling (BIR), citing media reports. The suspension is for a period of four months beginning May 15^th.

The move is aimed at strengthening the domestic supply amidst uncertainties created by the pandemic outbreak. Incidentally, the country had reported shortage of scrap on account of reduction in collection rates caused by COVID-19 pandemic. The major domestic steelmakers in the UAE had reported reduced crude steel output during the month of April this year.

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The products that come under the export ban include ferrous scrap materials under HS codes 720450, 720449, 720430, 720429, and 720410 and stainless steel scrap under HS Code 720421. In addition, exports of paper grades 470710, 470720, 470730 and 470790 have been banned.

The export ban is likely to impact ferrous scrap supplies to south Asian countries, especially India and Pakistan. The country was the single largest supplier of ferrous scrap to India in 2019, accounting for almost 17% of total imports by India. Also, it was the second largest scrap supplier to Pakistan, accounting for nearly 18% of the country’s total imports.