Exports of metal scrap from the European Union to Egypt face potential restrictions under the new European waste shipment regulation, after the European Commission included Egypt in the draft list of non-OECD countries not permitted to receive metal waste from the EU.
The Commission published the draft on September 18, 2026, with the final list to be adopted by November 21, 2026. The new rules for exports of non-hazardous waste to non-OECD countries will come into effect on May 21, 2027. Egypt is among the countries that applied to continue receiving specific types of non-hazardous waste from the EU.
According to the Commission's assessment, Egypt met the requirements for receiving waste paper, textiles, rubber, wood, glass, organic waste, and food industry waste. However, based on the information available to the Commission, it did not demonstrate that it meets the necessary requirements for the environmentally sound management of metal waste. Therefore, these wastes were not included in the draft list of wastes permitted for export to Egypt.
The draft has not yet become a final decision
Egypt's exclusion from the list of countries permitted to receive European scrap is still a proposal, not a final decision.
Comments and observations on the draft will continue to be accepted until October 16, 2026, and the European Commission will officially adopt the decision in the fourth quarter of the year.
The new rules also allow excluded countries to reapply in the future to join the list of countries permitted to receive waste.
For Egypt, the upcoming period allows for addressing this development through two parallel paths: working to maintain access to European supplies, while diversifying import sources and accelerating the development of local capacities for scrap collection, processing, and recycling.
If the restrictions are applied in their current form, the efficiency of the local scrap system and the diversity of import sources will become more important factors for the Egyptian steel industry, especially given that a significant portion of production relies on electric arc furnaces and the factories' need for stable raw material supplies.
European scrap: more than two million tons to Egypt in 6 months
Egypt imported approximately 2.12 million tons of steel scrap from the European Union during the first half of 2026, a 59.7% increase year-on-year, according to data from the European statistical office Eurostat, as reported by Fastmarkets, a platform specializing in commodity and raw material market data and analysis.
European trade data confirms Egypt's continued importance as a destination for European scrap exports. In 2025, Egypt imported approximately 1.83 million tons of iron scrap from the European Union. Egypt also accounted for about 1.9 million tons of the EU's total exports of recyclable raw materials during the same year, according to Eurostat.
Scrap in the Egyptian steel production system
Scrap is one of the main inputs in steel production through electric arc furnaces (EAF), which rely on melting scrap as an iron source, in addition to using direct reduced iron (DRI) or hot briquetted iron (HBI), depending on the plant's technology and the raw material mix used.
The Egyptian steel industry largely depends on electric arc furnace technology, making scrap an essential part of the supply chain for long steel and flat products manufactured using this technology.
The proportion of scrap used in the metallic charge varies from one plant to another depending on the type of furnace, the quality of available scrap, the availability of direct reduced iron, and the specifications of the final product.
European scrap is among the external supply sources for Egyptian plants, as confirmed by trade data showing a significant volume of Egypt's imports of European scrap during 2025 and the first half of 2026.
Searching for alternative sources
Egypt imports iron and steel scrap from several markets. Data from the World Bank's International Trade Database (WITS), based on United Nations international trade data, shows that Egypt's imports of 'other waste and scrap of iron or steel' (HS 720449), the international customs classification code for this type of scrap, reached approximately 3.97 million tons valued at $1.55 billion in 2024.
The United Kingdom tops the list of suppliers with approximately 1.76 million tons valued at $687.3 million, followed by Belgium with about 1.08 million tons valued at $419.9 million, then the Netherlands with approximately 556.3 thousand tons valued at $216.9 million.
Egypt also imported about 202.3 thousand tons from Lebanon valued at $78.9 million, and about 185.7 thousand tons from the United States valued at $72.4 million.
Thus, the United Kingdom, Belgium, and the Netherlands alone accounted for approximately 3.40 million tons of Egypt's imports recorded under this item in 2024, which is nearly 86% of the total quantity, according to WITS data.
Draft text: Why was metal scrap excluded?
Data from the European Commission's Joint Research Centre (JRC) reveals the importance of the Egyptian market in European scrap trade. In 2024, the European Union exported approximately 16.2 million tons of iron scrap outside the EU, equivalent to about 30% of global scrap exports traded outside production regions, remaining the largest net exporter
of scrap globally.
Egypt ranked second among the main destinations for European scrap, with a share of approximately 10% of exports, according to JRC's analysis of trade data. In contrast, the United States exported about 14.6 million tons of scrap in 2024, also maintaining its position as a major net exporter of scrap.
This trade situation comes at a time when the European Commission is redefining non-OECD countries that can continue to receive certain types of non-hazardous waste from the EU after the new rules come into effect on May 21, 2027.
The regulation stipulates the preparation of a list of eligible countries by November 21, 2026, with the list including the types of waste for which each country has demonstrated the ability to manage in an environmentally sound manner.
According to the text of the Commission's draft, Egypt applied to receive seven types of waste: waste paper, textiles, rubber, wood, glass, organic waste, and food industry waste, in addition to metal waste. The Commission's assessment concluded that Egypt meets the environmentally sound management requirements for the first six types, and therefore proposed their inclusion in the list of wastes that can be exported to Egypt. For metal waste, however, it concluded that the necessary requirements were not met.
The draft indicates that metal waste is subject to stricter scrutiny due to the potential presence of toxic heavy metals, including lead, mercury, cadmium, and hexavalent chromium, as well as risks associated with cutting, smelting, and refining processes. The Commission clarifies that these processes may generate emissions of dust, fumes, and contaminated residues if not managed under appropriate environmental controls.
In Egypt's case, the Commission's assessment was not limited to the existence of waste management legislation but extended to verifying the application of necessary procedures to ensure the environmentally sound management of metal waste. According to the draft, based on the information available to the Commission at the time of the assessment, Egypt did not demonstrate that it had established and implemented all required measures for this type of waste. Therefore, metal waste was not included in the list of waste permitted for export to Egypt in the proposed list.
This assessment remains within the draft European list and is not a final decision. The Commission published the draft on September 18, 2026, and opened a period for comments until October 16. The first list is to be adopted by November 21, 2026. The rules also stipulate that the list will be updated periodically, at least once every two years.
Increased reliance on local scrap
Egypt is working to develop local scrap sources through a project for ship-breaking and recycling in Damietta Port. The project began with the signing of a memorandum of understanding in May 2024 between the Holding Company for Maritime and Land Transport and Al-Wahda Industrial Development Company, followed by the signing of an agreement for its establishment in December of the same year. The project is located in the western area of Damietta Port and aims to establish a facility for breaking large, medium, and small ships in accordance with international standards.
According to the data announced at the time of signing the agreement, the project aims to produce approximately 1.5 million tons of scrap annually within five years of its commencement. The Ministry of Transport had stated that the local market provides about 1.5 million tons of scrap annually, compared to importing about 3 million tons from abroad.
As of the end of 2026, reliable data on the project's operational start or its commercial scrap production is not available. Consequently, the 1.5 million tons remains a targeted production capacity for the project, not currently available local supply. It also cannot be considered, in its current state, an effective substitute for the quantities imported from foreign markets.
