The regulation, which entered into force on June 10, is stated to remain valid until October 8. It was introduced with the primary aim of securing the domestic industry’s raw material supply. It was also noted that exemptions may be granted in certain cases with the approval of the relevant authorities.
Sector representatives, however, do not expect the decision to cause significant market volatility. Market sources point out that scrap exports from the UAE have long been subject to strict controls, and therefore existing trade flows are expected to remain largely unchanged.
Nevertheless, the sector’s attention is now focused on how the exemption mechanism will be implemented and whether stricter export licensing rules may be introduced in the future.
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