Recycling associations concerned about EC proposals in steel and metals action plan

The recycling associations BIR and EuRIC have issued a joint statement expressing concern over the export proposals in the Steel and Metals Action Plan published by the European Commission.

Representatives of the recycling industry welcomed the Commission’s efforts to support the competitiveness and sustainability of the European steel industry and the plan’s proposals, especially the role of circularity in decarbonizing the industry and steps to stimulate demand for recycled materials.

However, the associations warned against the introduction of reciprocal export restrictions and the potential introduction of export levies or duties on recycled metals.

“Such measures risk creating new trade barriers that would harm the functioning of global recycling markets and especially European metal recyclers,” the statement said.

The organizations emphasized that 80% of scrap is recycled in the domestic market, while the rest is exported due to lack of demand. Therefore, it is important to introduce measures to stimulate the use of recycled materials in Europe instead of considering new obstacles.

Further restrictions on open trade, in addition to the new EU Waste Transport Regulation, the associations believe, will seriously damage the European and global recycling industry. According to sector representatives, the EC should ignore proposals to restrict trade in scrap, instead introducing mandatory recycled content targets for steel products. This will help to create further demand for scrap, especially in the automotive and construction industries.

BIR and EuRIC are also calling for a harmonized classification system for recycled metals and support for investment in recycling infrastructure to increase domestic processing.

In turn, the Italian steel producers’ association Federacciai notes that the EC’s plan contains significant gaps in energy, trade, and recycling measures, and there is uncertainty about its implementation. In particular, they call ferrous scrap one of the unresolved problems.

According to the EBA statement, a clear policy is needed to keep scrap in Europe and prevent its export to countries that do not comply with European environmental standards, otherwise it could undermine the industry’s green transition.

On 19 March, the European Commission released the Steel and Metals Action Plan, which proposes a number of steps to ensure affordable and secure energy supply, prevent carbon leakage, protect European industrial capacity, reduce decarbonization risks, etc. EUROFER believes that the plan makes the right diagnosis, but requires immediate implementation. European steelmakers also note that energy prices remain a problem.