The government announced that it will not renew decrees 1040/20 and 70/23, which since 2009 banned the export of scrap metal. The measure, communicated by the Minister of Deregulation and State Transformation, Federico Sturzenegger, reopens the possibility of commercializing these wastes in international markets, which generated divided opinions among economic actors.
According to Sturzenegger, this decision aims to incentivize recycling and open new business opportunities. In this sense, the minister used his X account to explain that President Javier Milei pointed out that the power of the State should not be used to redistribute income among market actors arbitrarily.
Additionally, the minister argued that the prohibition depressed local prices of metallic waste, discouraging recycling and limiting economic opportunities. For example, he mentioned that materials such as discarded copper cables from telephone companies, which have high demand in the international market, could not be exported.
On the other hand, he argued that the regulation favored only local scrap processors, but harmed small recyclers and companies that generated these wastes. According to Sturzenegger, allowing exports will boost the development of businesses related to waste valorization.
## Concerns of the local industry
However, the measure announced by the Government raised concerns in the metallurgical sector. For this reason, this sector warned that this decision could worsen the shortage of raw materials. Since 2009, the regulation aimed to ensure the internal supply of scrap, a key input for the production of steel, copper, and aluminum.
In this sense, the industry fears that the export of these materials may increase their costs and affect the competitiveness of local companies throughout the value chain. Therefore, they argue that the current supply situation remains limited and that the opening of external markets could worsen this problem.
## Context and background
The restriction on the export of scrap metal was implemented in 2009 with the aim of strengthening the national steel industry. At that time, the government justified the measure as a way to ensure the internal supply of key materials for production and avoid the price increase of products such as steel.
The regulation included suspending both definitive and temporary exports of iron, steel, aluminum, and copper scrap, classified in certain tariff positions.
## Impact and perspectives
The current decision raises a debate about the balance between incentivizing recycling, opening international markets, and ensuring the development of the local industry. While the government highlights the economic and environmental benefits of the measure, the industry warns of possible negative impacts on its production and costs.
The success of this policy will depend on how the needs of the domestic market are managed in the face of the opening of new business opportunities, as well as the commitment of all sectors to ensure sustainable and competitive development.
## What is the Government’s position on the export of scrap metal?
According to information on the Government’s official page, the repealed decree prohibited the export of various valued industrial wastes, such as metallic or plastic waste, with the aim of stabilizing local prices. According to the authorities, this only favored a few entrepreneurs at the expense of the majority of SMEs.
Therefore, this measure would align with recent modifications to the Customs Code, where the export of valued waste will no longer be subject to prohibitions. To maintain some control over compliance with international treaties on cross-border movements of waste, exports must be formalized through a sworn statement, with post-fiscalization by the Environment Subsecretariat.
In this regard, the Government argues that aligning local prices with international ones will incentivize the collection of such waste, increasing exports and lowering local prices.
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