Sonasid stock faces scrap-supply risk as EU curbs draw criticism

Proposed European Union restrictions on recycled-metal exports are raising supply concerns for steelmakers in Morocco, adding a policy risk for investors following Sonasid stock.

Argus reported on Tuesday, November 3, that steelmakers and traders in major scrap-importing countries are challenging the rationale for the proposed curbs. The European Commission's draft list would determine which non-OECD countries can continue receiving certain non-hazardous waste from the European Union after May 2027.

Morocco relies on imported scrap

Moroccan producers voiced similar concerns at the Arab Steel Summit. Argus cited domestic scrap generation of roughly 800,000 tonnes a year against steel consumption of about 3.5 million tonnes, leaving the country heavily dependent on imported material.

The Bureau of International Recycling has called for the draft restrictions to be reassessed. The organization argues that excluding major importing markets could disrupt established recycling routes and limit access to recycled metal.

Policy decision remains ahead

The consultation on the proposed list closed on October 16. The European Commission is expected to publish a final authorized-country list by the end of 2026, leaving the regulatory outcome unresolved for steelmakers that depend on imported scrap.

For Sonasid stock, the issue matters because tighter access to imported metallic feedstock could influence procurement conditions and production economics across Morocco's steel industry. The potential effect depends on the final list, implementation timing and the availability of alternative suppliers.

Sonasid at a glance

• Company: Sonasid
• Market focus: Moroccan steel industry
• Latest investor publication: Semiannual report for June 30, 2026
• News date: November 3, 2026

Current market reports: Current market reports.

Further investor publications are available from Sonasid's investor relations page.