Joint BIR/EuRIC Statement: A Strong Opposition to Trade Restrictions in the European Steel Industry
On 27 February 2025, representatives from several European countries gathered at the Summit on the Future of the European Steel Industry in Paris, where significant discussions around the future of European steel production took place. At this summit, proposals were made by representatives from Belgium, Italy, France, Luxembourg, Romania, Slovakia, and Spain to “secure access to raw materials” by keeping steel scrap within the EU. The idea was to introduce measures that would “restrict or ban exports” of recycled steel to countries that do not adopt environmental and production legislation similar to that of Europe.
This proposal was met with strong opposition from two major global recycling industry bodies: the Bureau of International Recycling and the European Recycling Industries’ Confederation. Both organizations, which represent thousands of recycling companies globally, argue that these trade restrictions would be counterproductive and would harm the environment, economy, and the circular economy model that Europe and the world are trying to build.
The European Recycling Industry: No Shortage of Steel Scrap
BIR and EuRIC emphasize that there is no current shortage of recycled steel in Europe. In fact, the European recycling industry processes over 100 million metric tons of steel every year. Of this, approximately 80% is used domestically within Europe, while the remaining 20% is exported. This exportation is not due to a lack of capacity within Europe, but because global markets recognize the value of recycled steel. Europe simply does not have the capacity to consume all the recycled steel produced within its borders.
The claim that exported steel scrap is a “leakage” is incorrect. Rather, it is part of a global commodity market where steel scrap, often referred to as recycled steel, is an important feedstock for steel manufacturing worldwide. The trade in recycled steel has been established for decades, with strong and efficient recycling supply chains that have positioned Europe as a global leader in steel recycling. These supply chains set high standards for efficiency, sustainability, and environmental performance, contributing to the global circular economy.
Trade Restrictions: A Barrier to Circularity
One of the key concerns voiced by BIR and EuRIC is that implementing additional trade restrictions would significantly hinder the global circular economy. The EU's recycling industry is already facing challenges due to the Waste Shipments Regulation, which introduces strict bureaucratic measures on the export of valuable recycled steel. These additional restrictions would only increase these challenges, and predictably lead to a range of negative outcomes.
According to BIR and EuRIC, the following problems would arise:
1. Reduced Collection and Processing Rates: Introducing trade barriers would lead to diminished economic incentives, which would result in lower collection rates for metal waste. This would, in turn, affect the overall efficiency of steel recycling across Europe.
2. Decreased Investment in Recycling Infrastructure: Less demand for recycled steel would likely discourage further investment in recycling infrastructure, limiting technological advancements and stifling the growth of the recycling sector.
3. Market Exit of Recycling Companies: The added bureaucratic red tape could make it difficult for small and medium-sized recycling companies to stay competitive. As their business models become unsustainable, many of these companies could be forced to exit the market.
4. Reduced Material Availability: With the shrinking recycling ecosystem, there would be less availability of recycled steel. This, in turn, would push the industry to rely more heavily on virgin materials, which is counterproductive to achieving sustainability goals.
Recycled Steel: A Valuable Commodity, Not Waste
Another point of contention is the characterization of recycled steel as "waste". The suggestion that exported recycled steel somehow contributes to environmental degradation is deeply misleading. Instead of being waste, recycled steel is a valuable commodity that is used as a primary input for steel production around the world.
BIR and EuRIC argue that cutting off access to European recycled steel would lead to higher carbon emissions. Many countries that rely on European recycled steel would be forced to revert to more carbon-intensive steel production processes, such as Basic Oxygen Furnace production. This would result in higher emissions globally and directly contradict Europe’s climate leadership ambitions.
Alternative Solutions: A Path Toward a Sustainable Future
Rather than imposing trade restrictions, BIR and EuRIC propose a series of constructive alternatives to help drive the circular economy forward. These alternatives would support both the growth of the recycling industry and its role in the global fight against climate change.
1. Mandatory Recycled Content Targets: Governments can create lead markets for circular steel by setting mandatory targets for the use of recycled steel in key sectors such as construction, automotive, and infrastructure. This would help stimulate demand for sustainable materials.
2. Public Procurement Policies: The EU can implement public procurement policies that prioritize recycled materials in government contracts. This would further drive demand for sustainable steel and incentivize companies to recycle more steel.
3. Investment in Recycling Infrastructure and R&D: Public and private investment in research and development (R&D) for the recycling industry is crucial. It would improve technologies and increase the efficiency of steel recycling, driving growth and improving circularity.
4. Inclusion of Recyclers in Policy Making: Recycling organizations such as BIR and EuRIC should be meaningfully included in policy discussions and decision-making processes. This would ensure that the needs and challenges of the recycling industry are considered when shaping legislation.
Commitment to Circularity and Sustainability
BIR and EuRIC have made it clear that they are fully committed to advancing a truly sustainable and circular economy for metals. The organizations believe that well-functioning markets, not artificial trade barriers, are the key to fostering environmental progress. They continue to push for evidence-based dialogue and cooperative action between stakeholders, including producers, consumers, and policymakers.
As the recycling industry continues to innovate and invest in technologies that maximize resource efficiency, BIR and EuRIC are confident that Europe can lead the way in building a sustainable future by recognizing the essential role of recyclers in achieving global sustainability goals.
KEY TAKEAWAYS:
• Opposition to Trade Restrictions: BIR and EuRIC strongly oppose proposals to restrict or ban exports of recycled steel to non-EU countries, arguing that such measures would harm the circular economy, the environment, and global trade.
• No Shortage of Steel in Europe: Europe processes over 100 million metric tons of steel annually, with 80% used domestically and 20% exported due to insufficient local demand.
• Consequences of Trade Barriers: Proposed trade restrictions could lead to reduced recycling rates, less investment in recycling infrastructure, and a shrinking recycling ecosystem.
• Recycled Steel is Valuable: Recycled steel is a commodity, not waste. BIR and EuRIC argue that cutting exports would force global producers back to carbon-intensive production methods, contradicting climate goals.
• Alternative Solutions: BIR and EuRIC propose solutions such as mandatory recycled content targets, public procurement policies, and increased investment in R&D for the recycling industry to support circular steel economies.
• Commitment to Circular Economy: The organizations reaffirm their commitment to advancing a circular economy, advocating for policies that foster sustainable recycling practices and reduce global emissions.
