Egypt's iron industry is bracing for a potential crisis as the European Union moves to tighten restrictions on exporting scrap metal to the country. The EU's European Commission published a draft list on September 18, 2026, that includes Egypt among countries not part of the Organisation for Economic Co-operation and Development (OECD) that are not allowed to receive certain types of waste, including scrap metal. The list is set to be finalized by November 21, 2026, and the new rules will take effect on May 21, 2027.
The development is significant for Egypt's iron industry, which relies heavily on scrap metal as a primary input for production. Many Egyptian factories use electric arc furnaces that depend on scrap metal, and the EU is a major source of this material. According to the Arab Iron and Steel Union, Egypt imported 2.12 million tons of scrap steel from the EU during the first half of 2026, a 59.7% increase from the same period in 2025.
The European Commission cited Egypt's lack of information on its environmental controls as the reason for its inclusion on the draft list. The commission requested that Egypt provide information on its controls to limit pollution from scrap metal processing, including energy efficiency, emissions to air and water, and controls on hazardous materials. Egypt has the opportunity to provide additional data and potentially change its status before the new rules take effect.
If the EU follows through with the restrictions, Egyptian factories may face additional pressure to secure their raw materials. This could lead to increased reliance on alternative sources or exploration of new markets for scrap metal imports. The development comes at a challenging time for the global iron industry, with fluctuations in raw material costs and global market trends.
The Egyptian government is taking steps to address the issue. Industry Minister Khaled Hisham previously mentioned plans to introduce new legislation to regulate scrap metal trading in Egypt. The goal is to optimize the use of available scrap metal resources and support local steel factories, particularly as the government seeks to expand production capacity.
The Egyptian iron industry is a significant sector, with many factories relying on scrap metal imports. The country's steel production is expected to be impacted by any changes to scrap metal imports. Industry stakeholders are closely monitoring the situation, as any disruption to scrap metal supplies could have far-reaching consequences for the sector.
The potential restrictions on scrap metal exports from the EU have raised concerns about the long-term sustainability of Egypt's iron industry. With the global market experiencing fluctuations, the Egyptian government and industry leaders will need to work together to find solutions to ensure the sector's stability and growth.
Key points
- Egypt's iron industry faces a potential crisis due to the EU's plans to restrict scrap metal exports.
- The EU's restrictions could lead to increased pressure on Egyptian factories to secure raw materials.
- The Egyptian government is exploring options to address the issue, including new legislation to regulate scrap metal trading.
