43 countries globally have restricted the export of ferrous scrap

The policies of restricting the export of ferrous scrap are very wide and currently are applied by 43 countries. With the expected adoption of changes to the Waste Shipment Regulation in the EU in January 2023, as well as relevant measures in Mexico, there will be 71 such countries, or every third country around the world.

Countries that applied scrap export barriers or are going to apply provide 77% of the global crude steel output. This is a very serious factor, since the absence of appropriate measures will put the steel industry in a losing position compared to competitors.

Export of scrap is most actively restricted in Africa, MENA and Asia. These are countries with historically low steel consumption and insufficient scrap resources. Export duty is the most common tool, because it provides more flexibility. But export bans are used almost as often as duties – about one in three measures.

The latest trend – is that developed countries, for example, the EU, are actively implement scrap export restrictions to achieve climate ambitions, since the production of steel, using scrap as the main raw material, involves up to 6 times less carbon intensity. It is also very important that similar instruments operate in the largest producers and exporters of steel – China, India, and the Russian Federation.

Restrictions on the export of scrap by the EU will lead to a strengthening of the trend and the introduction of relevant measures by a number of countries.