European metal scrap industry urges against EU action on exports

The European steel and aluminium scrap industries urged the European Commission on Wednesday January 15 against taking action to curb scrap exports after domestic industry metals producers backed measures to do just that

The Bureau of International Recycling (BIR) and the European Recycling Industries’ Confederation (EuRIC), both based in Brussels, each published open letters to the EU warning that any such protectionist measures would pose issues to the domestic scrap industries.

The move follows calls made earlier this week when the European Steel Association (Eurofer) and European Aluminium urged the EU to take immediate and effective action to tackle “scrap leakage” so that the EU can meet its sustainable development aims and secure industrial competitiveness.

“Scrap exports have been keeping recycling businesses alive, serving as a counterbalance to the extremely low EU demand for recycled materials,” a statement from the EuRIC said. “Imposing any restrictions on scrap exports will have detrimental consequences to recycling businesses, the environment, the economy and EU’s competitiveness.”

In its open letter, EuRIC urged EU policymakers to preserve open trade, to carefully consider the EU scrap industry’s contributions to the EU economy and sustainability, and to only endorse measures that encourage them to keep innovating and generating resources, instead of hampering them and threatening their very existence.

“Any calls by the European steel and aluminium industry to restrict scrap exports are completely unjustifiable and unacceptable, especially when the supply of recycled scrap has never been the reason behind any decreased activity of EU mills,” EuRIC added.

For its part, the BIR said: “There is no shortage of material for European consumers of recycled steel and aluminium. Efforts to introduce export limits are aimed at artificially lowering the prices of the valuable materials domestically through unfair competition.”

Export restrictions would create an unprecedented shock to the worldwide recycling industry, affecting both European companies and their international partners, the BIR said.

“Rather than artificial trade barriers, we propose constructive solutions including recycled content requirements, green public procurement, and environmental impact accounting,” the BIR added.

The BIR said it was committed to working with EU leadership to develop policies that strengthen both European and worldwide recycling industries, fostering innovation and cooperation in the circular economy instead of creating trade barriers that may hamper international climate action.

Fastmarkets metals and mining team works with those involved in the buying, selling and trading of metals to deliver truly market-reflective prices and insights to successfully enable global trade. Find out more here.

What to read next
The publication of the following assessment was delayed: MB-AL-0052 Aluminum 6063 extrusion billet premium, delivered Midwest US, US cents/lb This price is a part of the Fastmarkets base metals package. For more information or to provide feedback on the delayed publication of this price or if you would like to provide price information by becoming a […]
The US green steel market faced minimal activity in the assessment period to Wednesday April 16, with sources reporting an unwillingness among buyers to pay a premium for low carbon steel.
Global physical copper cathodes premiums were mixed in the week to Tuesday April 15, with US market moving down, Europe rising and Asia holding largely steady.
How much Canadian aluminium is being diverted from the US to Europe, when will it arrive and what impact will it have on premiums? The market appears to be split, but that could all change at the end of June, sources told Fastmarkets in the week to Thursday April 17.
A1 Lithium, a US-based subsidiary of Anson Resources, is advancing its Paradox Lithium Project in Utah to capitalize on North America's growing lithium demand, leveraging a partnership with Fastmarkets and support from the US Supply Chain Resiliency Initiative.
The MB-AL-0020 Aluminium P1020A premium, ddp Midwest US, US cents/lb rationale mistakenly quoted the London Metal Exchange cash/three month spread to be trading at a $0.15 per tonne contango at the time of assessment on Wednesday. That is now corrected to read that it was trading at a $37 per tonne contango at the time of assessment. […]