Scrap Patriotism in the EU Recycling Market

German Associations Warn That Scrap Patriotism Threatens Recycling Stability

The debate over scrap patriotism continues to intensify across Europe as leading German industry associations challenge proposed EU export restrictions. Their joint letter highlights mounting concerns that the European Commission may undermine long-standing recycling markets. As a result, the groups argue that these policies could damage climate targets and weaken industrial competitiveness.

The three associations—BDSV, BVSE, and VDM—sent their warning to European Commission Executive Vice President Teresa Ribera. They describe new regulatory measures, including the Waste Shipment Regulation and the Critical Raw Materials Act, as severe interventions in functioning markets. Meanwhile, Brussels-based BIR has echoed these concerns, noting similar risks to global scrap flows and decarbonization plans.

Why Scrap Patriotism Could Disrupt Europe’s Circular Economy

The organizations argue that scrap patriotism creates artificial barriers that distort supply chains for recycled steel and metals. They stress that Europe faces no shortage of scrap; instead, they claim policymakers seek to push down market prices to support the primary steel sector. This approach, they say, threatens thousands of German SMEs that anchor the continent’s recycling infrastructure.

According to the associations, nearly 60 percent of EU steel production already relies on recycled metal. However, they warn that new export limits will suppress investment in modern sorting and processing technologies. Industry leaders, including BVSE’s Eric Rehbock, insist that recycling companies have built a true circular economy over decades. Yet, restrictive policies now introduce uncertainty that discourages expansion of recycling capacity.

Industry Leaders Demand Competition-Focused Policy Instead

The trade groups call for investment-friendly conditions rather than export barriers. They argue that European recyclers compete globally for both material and markets, and sealing off Europe weakens long-term competitiveness. Moreover, they say Europe risks reducing its supply of high-quality secondary raw materials—materials essential for green steelmaking and low-carbon manufacturing.

Their joint report warns of legal, economic, and supply risks linked to restrictive trade policies. Therefore, they urge the European Commission to avoid de facto export bans and instead pursue a coherent strategy that strengthens climate protection, the circular economy, and industrial resilience. They emphasize that the recycling sector remains part of the solution to Europe’s decarbonization ambitions, not a problem to be constrained.

SuperMetalPrice Commentary:

SuperMetalPrice observes that the clash over scrap patriotism signals deeper tensions between Europe’s green ambitions and industrial competitiveness. The recycling sector supplies essential low-carbon inputs for steelmakers, battery material processors, and manufacturing. Any disruption to these flows may increase costs, reduce innovation, and push investment outside Europe. A balanced EU policy must support open markets while scaling domestic recycling capacity, or risk undermining its own climate and industrial goals.