The EU has begun monitoring scrap trade due to the risk of shortages

The European Commission (EC) has announced that it will begin monitoring imports and exports of scrap, including ferrous scrap, aluminum, and copper. This was in response to alarming signals from the steel industry about a growing shortage of raw materials and the potential threat of a shutdown of blast furnace and electric arc furnace capacities, Reuters reports.

According to representatives of the European Commission, scrap plays a key role in the production of steel and non-ferrous metals and is also one of the main elements in the EU’s transition to a low-carbon economy. At the same time, a significant part of European scrap is exported to Asia and Turkey, which limits the internal availability of raw materials.

The situation is further complicated by foreign policy factors. As stated in the Commission’s statement, the introduction by the United States of 50% tariffs on a wide range of steel and aluminum products (except scrap itself) has led to an increase in European aluminum scrap supplies to the US. This puts even more pressure on the EU internal market.

“We are seeing a decrease in the availability of scrap in the EU. The new US tariffs could further exacerbate this problem,” the statement said.

The EC plans to collect and analyze data on scrap trade by the end of September, after which it will decide on possible actions. At the same time, Brussels does not rule out the possibility of more rapid implementation of measures in the event of a failure of negotiations with the US on a trade agreement, in particular, the introduction of countermeasures in response to US tariffs.

As GMK Center reported earlier, in 2024, scrap exports from the European Union to third countries decreased by 10.8% compared to 2023, to 16.72 million tons. In 2023, the figure grew by 7% y/y – to 18.7 million tons, and in 2022, it fell by 10% y/y – to 17.6 million tons, for the first time after more than six years of upward trend.

Steel production in the EU in 2024 increased by 2.6% y/y – to 129.5 million tons. Global steel output fell by 0.9% y/y – to 1.84 billion tons.