The country has lifted the ban on the export of this raw material, which has been consistently extended since 2020

The government of the United Arab Emirates (UAE) has announced the lifting of the ban on exports of ferrous scrap and other industrial waste, instead introducing export duties. This is reported by SteelOrbis.

For scrap under HS codes 720450, 720449, 720441, 720430, 720429, 720421 and 720410, the duty is set at AED 400 per ton ($109).

After the ban on scrap exports is lifted, UAE suppliers are expected to increase trade with the Middle East and MENA countries, as they previously traded only in the domestic market. However, buyers believe that in order for the UAE exporters to remain competitive in the international market, they will have to take on the burden of paying the duty. This will make it difficult to provide effective offers.

The lifting of the ban on scrap exports could also create problems for small local smelters, who are likely to have difficulty meeting the demand for this raw material.

The export duties will come into force 30 days after their publication in the Official Gazette on December 15, 2023.

Last October, the UAE extended its ban on scrap exports for another three months, until December 19. The country first imposed export restrictions in May 2020 for a period of four months. The ban was subsequently extended to maintain the supply of raw materials for local steel mills. Nevertheless, exports continued to Pakistan and Bangladesh, as well as to India, until Indian customs stopped processing these shipments.