Egypt Extends Stainless Steel Scrap Export Duty for Another Year

Egypt has prolonged a levy on overseas shipments of stainless steel scrap, keeping an export duty of EGP 9,000 per metric ton in place for an additional year in a move aimed at safeguarding feedstock for domestic steelmakers, Egyptian customs authorities said in official tariff guidance.

The extension matters for regional scrap flows and local producers, as Egypt seeks to balance export earnings against rising internal demand for recycled inputs used in stainless and specialty steel production, according to government reporting.

The duty applies to stainless steel scrap and waste classified under customs heading 7204.21 and takes effect immediately after the previous measure expired, the Egyptian Customs Authority said in a tariff circular issued under a decision by the Ministry of Investment and Foreign Trade. 

Under the renewed decision, the duty applies to shipments exported outside Egypt, while consignments sent to domestic free zones are exempt, provided customs and supervisory authorities verify compliance with existing procedures. The tariff circular also noted that the measure is grounded in existing export laws and requires all customs outlets and export centers to comply with its provisions.

Analysts say the duty effectively raises the floor price for exports and encourages suppliers to sell domestically, a policy tool increasingly used by steel-producing countries to secure raw materials. Observers note that stainless scrap has become more valuable as mills pursue lower-carbon inputs and recycled content, intensifying competition between exporters and local buyers. Industry groups argue that predictable policy horizons help mills plan procurement, though exporters caution that prolonged duties can divert trade to alternative hubs in the region.

Market participants expect the policy to support local melt shops and reduce short-term supply risks, but say outcomes will depend on enforcement consistency and whether domestic prices remain competitive enough to absorb volumes that might otherwise be exported.

Source: Arab Iron & Steel Union

SUNSHINE Spotlight: Egypt’s one-year extension of a stainless steel scrap export duty underscores its push to prioritize domestic steel supply amid tightening recycled material markets.