The Growing Concern Over Proposed Trade Restrictions on Recycled Steel
The European Recycling Industries' Confederation (EuRIC) and the Bureau of International Recycling (BIR) have expressed their profound concerns regarding proposals discussed at the Summit on the Future of the European Steel Industry held in Paris on 27 February 2025. This summit, a key event for Europe’s steel sector, brought together industry leaders and policymakers to discuss ways to enhance the competitiveness and sustainability of the steel industry. However, it also included a proposal from representatives of several European nations that could have a major negative impact on the recycling sector.
The proposal discussed by Belgium, Italy, France, Luxembourg, Romania, Slovakia, and Spain included measures to restrict or ban the export of recycled steel (scrap) to non-EU countries that do not adopt environmental and production regulations similar to those in Europe. These countries voiced concerns over the need to secure domestic access to raw materials while protecting local steel production. However, EuRIC and BIR argue that such proposals are based on flawed assumptions and could harm both the economy and environment in the long term.
The European Recycling Industry: A Vital and Well-Functioning Market
One of the key points raised by EuRIC and BIR in opposition to these proposals is the misunderstanding of Europe’s recycling capacity. Europe’s recycling industry processes over 100 million metric tons of steel annually, and 80% of that output is consumed domestically. This means that the vast majority of recycled steel stays within the region, helping to meet demand in Europe’s steel production, construction, and infrastructure sectors.
The remaining 20%, approximately 20 million metric tons of recycled steel, is exported to other markets worldwide. EuRIC and BIR stress that this export practice is not due to a lack of demand within Europe but rather the natural operation of a healthy global steel market. As steel is a global commodity, countries worldwide, including non-EU nations, are seeking recycled steel as a more sustainable feedstock for steel production, contributing to global resource efficiency and lower emissions.
The European recycling industry has built a strong global presence, setting industry standards for efficiency and environmental performance. By restricting steel scrap exports, European authorities would risk weakening the established global recycling supply chain and significantly damaging Europe’s position as a world leader in circular economy practices.
The Impact of Additional Export Restrictions
The proposed trade restrictions are not without serious consequences. According to EuRIC and BIR, the introduction of these barriers would create significant disruptions for the European recycling industry. Since the Waste Shipments Regulation (WSR) was already established, recyclers are already facing growing bureaucratic hurdles to export recycled steel to markets outside the EU. Implementing additional restrictions could further complicate these processes, leading to economic setbacks and regulatory inefficiencies.
Some of the expected negative impacts include:
1. Decreased Collection Rates: By artificially suppressing the prices of recycled steel, the market would no longer be as economically viable for recyclers. This would likely lead to reduced collection and processing of scrap steel, ultimately limiting the supply of valuable secondary raw materials.
2. Increased Costs for Recyclers: Without the ability to export steel scrap to international markets, recyclers would likely face lower prices for their products, which could lead to reduced investments in recycling infrastructure and technology.
3. Market Exits: As recycling becomes less economically sustainable, some companies may be forced to exit the market, shrinking the recycling ecosystem and reducing the availability of recycled steel.
4. Harm to Circular Economy Initiatives: Circularity in steel production is based on the ability to reuse materials through international trade. Artificial trade restrictions would reduce the flow of material into global recycling loops, undermining efforts to create a more sustainable global economy.
Misunderstanding the Role of Recycled Steel
At the core of EuRIC and BIR’s objections is the mischaracterization of recycled steel exports as waste. The term “scrap” often carries a negative connotation, which does not accurately reflect the true value of recycled steel. Unlike waste, recycled steel is a valuable commodity that plays a critical role in the production of new steel, both within Europe and globally.
Rather than contributing to environmental degradation, the export of recycled steel supports a low-carbon steel production cycle. Steel mills in countries receiving European steel scrap use it to produce new steel in a more energy-efficient and environmentally friendly process compared to primary steelmaking, which is far more carbon-intensive. Recycled steel helps to reduce the carbon footprint of the global steel sector and supports global climate goals.
Restricting access to European recycled steel could compel many countries to revert to more polluting methods of steel production, such as the Basic Oxygen Furnace (BOF) method, which releases more carbon dioxide and other pollutants into the atmosphere. This would directly contradict Europe’s own climate goals, undermining the region’s leadership in tackling climate change and building a greener economy.
A Call for Constructive Alternatives
Instead of pursuing trade restrictions, EuRIC and BIR propose several constructive alternatives to support Europe’s transition towards a more sustainable circular economy:
• Create Lead Markets for Circular Steel: One of the most effective ways to stimulate the use of recycled materials is through mandatory recycled content targets in key sectors, such as automotive, construction, and manufacturing. By requiring companies to use a certain percentage of recycled steel in their products, the EU can encourage a market for circular steel without resorting to trade barriers.
• Public Procurement Policies: Governments can help foster a demand for recycled materials by prioritizing the purchase of products made from recycled steel in their public procurement policies.
• Increase Investment in R&D: The recycling industry needs more investment in research and development to enhance its capabilities and increase resource efficiency. Government support for R&D initiatives would drive innovation in the sector and help improve the environmental footprint of recycling processes.
• Engage Recyclers in Policy Discussions: It is essential that the recycling industry be meaningfully included in policy discussions and decision-making processes. Recyclers are a key part of Europe’s green economy, and their perspectives should be considered when designing future policies.
Key Takeaways:
• EuRIC and BIR strongly oppose the proposal to impose trade restrictions on recycled steel exports, arguing that the European recycling industry is a global leader in resource efficiency and environmental performance.
• Europe processes over 100 million metric tons of steel annually, with 80% consumed domestically and 20% exported to international markets due to limited internal demand.
• Additional trade restrictions would suppress prices, reduce investment in recycling, and lead to market exits by numerous recycling companies.
• Recycled steel is a valuable commodity, not waste, and its export supports global low-carbon steel production, reducing global emissions.
• EuRIC and BIR call for alternatives, such as mandatory recycled content targets, public procurement policies, and increased investment in R&D to promote a circular economy.
• Artificial barriers to trade would undermine Europe’s climate goals and could force other countries to adopt more polluting methods of steel production.
By prioritizing sustainable practices and fostering open markets, Europe can strengthen its position as a leader in green manufacturing and global sustainability while maintaining a competitive recycling industry.
