German industry associations outline challenges for the scrap recycling sector

The Federal Association of Steel Recycling and Waste Management Companies (BDSV) and the Association of German Metal Traders and Recyclers (VDM) have published a position paper with requirements for the future federal government, EUWID Recycling reports.

The industry associations emphasize the importance of the metal recycling sector for resource conservation, climate protection, and the competitiveness of German industry. In addition, they have identified priority policy topics for the new legislative period (2025-2029).

BDSV and VDM call for a holistic view of the entire supply chain. The associations criticize the fact that commodity policy has so far focused mainly on producers and steel mills. At the same time, the contribution of the recycling industry to the supply of high-quality secondary raw materials has often been neglected. They insist that certified waste management companies should be better recognized as key players in the circular economy.

The document also emphasizes that free trade in secondary raw materials such as steel and metal is essential for the competitiveness of the industry and security of supply. The BDSV and VDM strongly oppose trade restrictions that hinder its exports. Instead, they propose to promote the inclusion of recycled raw materials in trade agreements and promote international raw material partnerships. The associations note that practical recommendations from the EU are needed to remove regulatory obstacles.

The organizations draw attention to high electricity prices in Germany, which threatens the competitiveness of the steel industry. This, in turn, affects the demand for processed steel and metal. The associations call for reducing state fees, surcharges and taxes on electricity to the minimum European level, accelerating the expansion of renewable energy sources and creating a temporary instrument to support the industry during the energy transition.

The BDSV and VDM also emphasize the acceleration of permitting procedures and the reduction of bureaucracy at the EU, federal and state levels. The associations draw attention to establishing a realistic balance between the provision of raw materials and the removal of harmful substances in the processing process. The position paper also calls for promoting the development of rail logistics for scrap transportation.

As GMK Center reported earlier, EUROFER and European Aluminium are calling for measures to be taken to curb scrap leakage. In its turn, the EuRIC recycling industry association warns against imposing restrictions.