SynopsisThe United Arab Emirates has decided to extend its ban on ferrous scrap exports for an additional three months, citing the need to support local steelmakers' raw material supply. Despite the ban initially imposed in May 2020, scrap exports to countries like India, Pakistan, and Bangladesh persisted, leading to a recent decline in scrap imports from the UAE. This decision impacts HS codes under heading 7204 and aims to stabilize local scrap prices.Article:The United Arab Emirates has taken a significant step to ensure the stability of its domestic steel industry by extending the ban on ferrous scrap exports for an additional three months. This move, communicated through a notice from Dubai Customs, comes as a response to the growing concerns surrounding the availability of raw materials for local steel manufacturers.Under this extension, all HS codes falling under heading 7204 are affected, further reinforcing the UAE's commitment to safeguarding its domestic steel production.The ban on scrap exports was initially implemented in May 2020 to ensure a consistent supply of raw materials for local steelmakers. Despite the ban, exports of scrap from the UAE persisted, primarily directed towards countries like India, Pakistan, and Bangladesh. However, in recent months, Indian Customs have ceased clearing scrap consignments originating from the UAE, resulting in a notable 60% year-on-year drop in scrap imports from the UAE to India, which stood at 73,340 tonnes during the January to July period.While India has tightened its stance on scrap imports, UAE shipments of ferrous scrap to Pakistan and Bangladesh continue without hindrance. These exports play a crucial role in supporting the steel industries of these countries.Within the UAE, the prices of delivered scrap have remained relatively stable. HMS 1/2 80:20 scrap is priced at AED 1,200-1,225 per tonne ($332-334), while heavy fabrication scrap commands prices of AED 1,300-1,325 per tonne.ConclusionUAE's decision to extend the ban on ferrous scrap exports underscores its commitment to bolstering the local steel industry's raw material supply. While this move has impacted scrap exports to India, it continues to support the steel sectors of Pakistan and Bangladesh. The stability in local scrap prices further enhances the resilience of the UAE's steel sector.