EU Scrap Export Ban Could Undermine Climate Goals and Steel Market Stability

Industry Study Warns Against EU Scrap Export Ban Proposal

Two major German industry associations—the Federal Association of German Steel Recycling and Disposal Companies (BDSV) and the Association of German Metal Traders and Recyclers (VDM)—have issued a joint warning against proposed European Union restrictions on ferrous scrap exports. Their position is based on a newly released study conducted by the Ernst Abbe University of Applied Sciences in Jena, which outlines the significant market and environmental consequences of such trade barriers.

The study, commissioned in response to proposals within the European Action Plan for Steel and Metals (SMAP), argues that limiting recycled steel exports would distort international markets, prompt retaliatory trade measures, and weaken Europe’s supply security. It concludes that the export ban would fail to support the EU steel sector or contribute meaningfully to decarbonization efforts. Rather than addressing competitiveness, the study finds that such restrictions would undermine the very goals they aim to achieve.

According to the study, recycled steel is not in short supply in Europe, and net exports reflect subdued domestic demand driven by high mill energy costs. Moreover, the EU remains reliant on imports of certain key recycled materials, including stainless steel scrap. Attempting to curb exports while still depending on imports creates a contradictory and risky trade policy, researchers warn.

Export Barriers Threaten Trade, Recycling Quality, and Global Climate Efforts

The study highlights that future challenges for Europe lie in the quality of recycled steel, not its volume. Export restrictions would likely reduce the global use of recycled scrap and inadvertently increase CO₂ emissions—a counterproductive outcome for climate policy. Additionally, trade restrictions could limit access to imported scrap grades necessary for EU production, placing pressure on manufacturers and recyclers alike.

Industry leaders echoed these concerns. Guido Lipinski, Managing Director of BDSV, emphasized that European recyclers operate competitively on the global stage. “Export restrictions would damage that competitiveness without improving domestic supply security,” he stated. Julia Ettinger, Secretary-General of EuRIC, added, “This study confirms what the recycling industry has said all along—export bans are not the solution. We need lower energy costs and better recycling infrastructure.”

Instead of trade barriers, the study recommends focusing on enhanced sorting technologies, pre-sorting processes, and investments in high-quality recycling infrastructure. These strategies, stakeholders argue, would strengthen Europe’s steel sector more sustainably and reduce emissions more effectively than protectionist measures.

SuperMetalPrice Commentary:

The findings of this study underscore a crucial tension in Europe’s materials policy: the balance between supply security and free trade. As energy costs continue to weigh on EU producers, the impulse to shield domestic industries with export controls grows. However, this research makes it clear that such measures could backfire—both economically and environmentally. At SuperMetalPrice, we view this as a defining moment for EU policymakers to shift their focus from short-term protectionism to long-term competitiveness via innovation, investment, and infrastructure. With the European Recycling Conference 2025 on the horizon, all eyes will be on whether Brussels embraces these recommendations or doubles down on restrictive policy.