The UAE government lifts the ban on ferrous scrap exports, opting for export duties instead. With charges set at $109 per metric ton, Emirati scrap suppliers anticipate expanded trade in MENA countries. However, challenges loom for local mills meeting demand. Scrap buyers foresee potential pricing struggles, posing a delicate balance for Emirati exporters striving for competitiveness in the global market.
In a strategic move, the UAE government has decided to lift the export ban on ferrous scrap, waste paper, and other commodities, introducing export duties in its place. The announcement specifies that AED 400 per metric ton will be the duty for ferrous scrap exports under various HS codes.
This policy shift marks a significant development for Emirati scrap suppliers, who were previously confined to domestic trading. With the ban lifted, they are poised to explore opportunities in the nearby MENA countries, anticipating an uptick in cross-border trade.
The removal of export restrictions, however, introduces a complex dynamic in the local market. While Emirati scrap suppliers eye international ventures, challenges may emerge on the home front. Small local mills, a key component of the domestic market, might face difficulties in meeting their scrap demand.
On the flip side, scrap buyers predict a nuanced scenario. To retain competitiveness globally, UAE exporters may need to absorb the tax burden themselves. This strategic move could potentially safeguard their standing in the international market. However, it presents a double-edged sword, with Emirati suppliers risking significant financial losses, potentially impacting their ability to provide competitive offers effectively.
As Emirati scrap suppliers navigate these evolving market dynamics, the delicate balance between international competitiveness and local market sustainability remains a focal point. The coming months will unfold the intricate interplay of factors shaping the future of Emirati scrap trade.
The UAE's decision to lift the export ban on ferrous scrap ushers in a new era for Emirati scrap suppliers. While the prospect of expanded trade in MENA countries beckons, challenges emerge on the domestic front, particularly for small local mills. The introduction of export duties, set at AED 400/mt, brings forth a delicate balance for Emirati exporters. Striving for competitiveness in the global market may necessitate shouldering the tax burden, presenting potential financial challenges. As Emirati scrap suppliers chart their course in this evolving landscape, finding equilibrium between international aspirations and local market sustainability will be key.