BMR contributing to environmental protection, says Secy General

The Bureau of Middle East Recycling (BMR) serves as the regional forum for diverse recycling processors and stockists, dedicated to fostering awareness on the subject. By strengthening collaborations within the Middle East recycling industry, the organisation encourages transformation of handy resources into industrial raw materials while preserving natural resources.

BigMint recently caught up with Sanjeev Phadke, the Secretary General of the Bureau of Middle East Recycling (BMR) and Managing Director of Metaal Europe International Group, to discuss how a silent recycling revolution is taking place in the Middle East. Excerpts from the interview follow:

Q1. What inspired you to be a part of BMR? How has its mission evolved to address the current challenges in the recycled steel market?

A: BMR is a globally acknowledged organisation, which represents the recycling fraternity in the Middle East. Being personally a part of the recycling industry for more than four decades, I feel BMR offers the best platform to share one's experiences and knowledge with the community at large.

BMR, through its affiliations with renowned trade associations such as EuRIC, BIR, ReMA, CMRA, and MRAI, actively participates in meetings and gatherings where globally important issues about recycling are discussed.

One of the most important topics that have been discussed during these meetings over the past few years is "changing and adapting new language" aimed at removing some misconceptions. In this context, BMR took the initiative in Q4 of 2023 to discontinue using the word "scrap" in all our communication. We are spreading the message that we are handling "recyclable materials" of significant commercial value. As responsible recyclers, we are proud contributors to the "carbon emission reduction" drive. We are helping to protect the environment.

Since the beginning of 2023, BMR has been working on some major issues listed below:

• Find the root cause of restrictions imposed by the EU on shipment of "recyclable materials" from the EU to the UAE (and other GCC countries) even though all these countries are signatories to BASEL norms.
  
  
• Address VAT-related challenges faced by the recycling fraternity (including the secondary alloy producers who consume recyclable material as their raw material) through the Dubai Recycling Business Group, which is part of the Dubai Chamber Of Commerce.
  
  

Q2. How do you foresee the demand for non-ferrous recycled steel evolving in 2024? What are the fundamental changes coming into the business in the Middle East?

A: The UAE and Saudi Arabia, in particular, and the Middle East and Asia, in general, are currently going through a transformation. From being a net exporter of all recyclable materials generated in the region, the Middle East is becoming a prominent recycling hub. Out of environmental concerns and the sustainability drive, all the prominent mills and foundries are working towards producing "green metals". As such, they have started recycling, and many new facilities have either been set up already or are in the process of being so. So, we see a very interesting time ahead for the recycling players in the region.

Q3. What are the primary challenges of the domestic recycling market in the UAE? How is BMR responding to these challenges?

A: The primary challenge is shrinking volumes of available recyclable materials in the domestic market. Despite the country's steady economic growth, the generation of recyclable materials will be significantly less compared to the growing demand. So, recyclers will find it increasingly difficult to find enough material in the domestic market to recycle. Anticipating this scenario, BMR launched an initiative to try to get export restrictions on recyclable materials removed from the EU to the UAE.

Another major challenge is related to VAT. Due to non-compliance by some vendors, organised companies are facing considerable difficulty. BMR has organised multiple workshops by inviting reputed tax advisors to keep our members updated about VAT rules and regulations.

Q4. What trends do you see regarding the availability of recyclable steel in the UAE?

A: With regard to recyclable ferrous materials, demand from local steel mills is steadily growing, but the current availability in the domestic market is still higher than consumption. This could, however, change once production capacities have been expanded, and then, mills will be compelled to look at imports.

Q5. How large is the non-ferrous recycling market in the country?

A: There is no data available to give definite numbers, but based on rough estimates, the approximate monthly volumes for the generation of recyclable non-ferrous recyclable materials are as follows:

• Copper and brass - around 5,000 t
  
  
• Aluminium - around 10,000 t
  
  
• Lead - around 5,000 t
  
  
• Stainless steel - around 3,000 t
  
  

The quantity of zinc-based scrap is insignificant. These estimates do not include the tonnages that transit through the UAE's ports or enter the country from neighbouring Oman and Saudi Arabia by road.

Q6. What is the current state of the export market for non-ferrous recyclable materials?

A: Export volumes are definitely going down, and certain grades are no longer exported. Most of the cleaner materials are increasingly getting consumed within the UAE, as domestic demand is growing.

Q7. Which regulations in the UAE are impacting the non-ferrous recyclable metal industry?

A: There are export taxes applicable on ferrous (which includes stainless steel), copper, aluminium, and lead recyclable materials. However, there is no export ban on any kind of recyclable materials, except hazardous materials.

Q8. What are the recent technological advancements that are influencing the non-ferrous recycling industry in the UAE?

A: Environmental protection rules are stringent in the UAE. As such, foundries and mills have to deploy state-of-the-art technology to remain compliant and keep emissions under control.

Q9. What are the potential expansion opportunities for the non-ferrous recyclable metals industry in the UAE?

A: Old factories are expanding their capacities, and new factories are being set up in the UAE. So, we will see a quantum jump in the recycling capacity for copper, aluminium, and lead. Currently, there is no production of stainless steel in the country except for some very small foundries, so stainless steel scrap may continue to be exported.