The United Arab Emirates has banned the export of scrap metal from the country from may 15

According to the order of the Ministry of economy, United Arab Emirates (UAE) has banned the export of all types of ferrous scrap within four months from 15 may.

the purpose of the ban is to meet the domestic steel producer with resources to conduct operations in a pandemic Covid-19.

Products prohibited for export are listed under codes HS 720450, 720449, 720430, and 720429 720410, which cover almost all potential export products from ferrous metals, 720421, which are a stainless steel scrap.

the UAE was the largest single supplier of ferrous scrap to India in 2019, putting it in the past year, 1.15 million tons of scrap in the country and provided 16,35% of the total Indian import of scrap of ferrous metals.

the UAE was the second largest supplier of ferrous scrap to Pakistan in 2019, exporting 656 000 tons and providing 18% of total import of scrap in this country.

In a normal trading environment, the overlap of exports from the UAE will lead to a significant increase in import prices for ferrous scrap in South Asia. Then it can affect prices on a global scale, since suppliers are from UK, USA and Europe will move to a reorientation of volumes of container sales in order to benefit from higher prices in South Asia that will affect the volume of deliveries to Turkey and other large countries.

Previously reported that American steel producers are already faced with the sharp increase in the deficit and the price of scrap metal in connection with a limited collection of raw materials on the background introduced measures to curb the pandemic.

Black scrap remains the main raw material for steel mills UAE, despite the increased use of direct reduced iron (DRI) in the Persian Gulf region in recent years.

Emirates Steel, the largest steel producer in the UAE, uses DRI as the main raw material for their electric arc furnaces in Abu Dhabi, but also uses ferrous scrap. In 2018, the company produced 3.1 million tons of finished steel, of which 2 million tons fell on the rebar.

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