EU Decision Supports Scrap Exports and Market Competition
The European Commission’s Steel and Metals Action Plan (SMAP) keeps scrap exports open. German recyclers and steel producers welcomed this move. Industry groups like bvse – Recycling Germany, BDSV, and VDM praised the decision. They said it preserves balanced competition in the metals market. They supported the EU’s “buy European” strategy. However, they stressed that competitiveness, not protectionism, should drive the steel sector’s carbon neutrality transition.
Industry leaders highlighted risks linked to selective protection policies, especially exemptions for semi-finished products like slabs and billets. These could trigger demands for protection across other sectors, such as automotive and construction. Nonetheless, recyclers view the EU’s choice to avoid scrap export restrictions as a win for market efficiency and innovation.
German Recyclers Stress Competitiveness Over Administrative Barriers
German recycling associations, representing thousands of companies and over 65,000 jobs, stressed that over 80% of their secondary metals sales occur within the EU. Maintaining open exports ensures price stability and fosters innovation. Sebastian Will, bvse board member and Recycling Europe vice president, called the EU’s decision an important milestone, preserving trust in European institutions.
Meanwhile, recycling groups reaffirmed their commitment to steel decarbonization while urging policymakers to prioritize competitiveness. The EU reported a slight 0.9% drop in ferrous scrap exports to third countries in H1 2025 compared to 2024. Turkey remains the largest importer, receiving 70% of these exports.
SuperMetalPrice Commentary:
The EU’s decision to keep scrap exports unrestricted signals a pragmatic approach balancing industrial policy and market dynamics. It protects German and European recyclers while avoiding protectionist pitfalls that could stifle innovation. This policy supports a competitive steel and metals sector critical for Europe’s green transition. Stakeholders should watch how the Commission’s evolving strategies affect supply chains and pricing in metals markets globally.
Leave a Reply
You must be logged in to post a comment.