EU Ferrous Scrap Trade Faces Risk as BIR Warns of Proposed Regulation

Brussels Regulation Proposal Could Reshape EU Ferrous Scrap Trade

The Bureau of International Recycling (BIR) has raised concerns over a proposed European Commission regulation aimed at protecting the EU steel industry from global overcapacity. While the legislation does not currently restrict exports of ferrous scrap, BIR warns it may establish a foundation for future trade barriers. These limitations could significantly affect Europe’s recycling industry and circular economy goals.

According to the European Commission, the EU steel sector faces “serious trade-related challenges,” including sustained import pressure and shrinking production levels. This pressure has driven some steelmakers, like ArcelorMittal, to pause green steel investments in Germany due to uncertainty. The proposal includes cutting tariff-free import quotas by 47%, doubling out-of-quota duties to 50%, and implementing a melt-and-pour origin requirement.

BIR argues that these policy shifts, though not directly targeting scrap exports, introduce a monitoring framework that could later evolve into hard restrictions. This would disrupt the free flow of secondary raw materials, undermining recyclers and impeding Europe’s green industrial strategy.

BIR Urges EU to Prioritize Recycled Steel Demand Over Trade Barriers

BIR’s Environment and Trade Director, Alev Somer, emphasizes the importance of open markets for recycled materials. “Empowering recyclers with free trade—not constraining them—is key to delivering both climate goals and industrial competitiveness,” she states. The organization advocates for positive measures like recycled-content mandates and green procurement policies instead of restrictive regulations.

As the regulation advances, BIR cautions policymakers not to jeopardize the recycling industry’s role in decarbonizing metals production. Recycled steel is a strategic resource in the EU’s circular economy. Blocking its trade could backfire, harming both economic and environmental objectives.

The European steel sector has already suffered significant losses—nearly 100,000 direct jobs since 2008. As the EU moves to secure its industrial base, it must balance trade protections with maintaining a competitive and sustainable recycling supply chain.

SuperMetalPrice Commentary:

The proposed regulation reflects the EU’s growing tension between protecting domestic industry and advancing climate goals. While shielding EU steelmakers from global overcapacity is understandable, limiting the flow of recycled materials risks creating a bottleneck in the green transition. Scrap-based steel production is central to lowering emissions and ensuring supply resilience. Brussels must tread carefully—trade barriers today may undermine the circular economy tomorrow. Market participants should monitor the policy closely, as any move toward export restrictions could trigger global price volatility for ferrous scrap.