German Recyclers Push Back Against EU Scrap Export Curbs, Warning of Market Distortion

German recycling and steel trade groups are urging the European Commission to abandon proposals that could restrict exports of steel scrap, arguing the measures would disrupt established markets and weaken Europe’s circular economy, according to joint industry statements released.

The appeal comes as Brussels weighs tighter controls under several flagship initiatives, including revisions to waste shipment rules and new industrial policy frameworks. Industry representatives say the debate matters because steel scrap is already a cornerstone of low-carbon steelmaking in Europe, and export limits could undermine investment and competitiveness across the recycling value chain.

Europe has spent decades building a scrap-based steel system to cut emissions and reduce reliance on virgin raw materials. Data published by European industry bodies show that close to 60 percent of EU steel output now uses recycled feedstock, a share that has steadily increased as electric arc furnace capacity expanded. Germany is one of the largest hubs, with thousands of small and mid-sized firms collecting, processing, and trading scrap domestically and abroad.

Against that backdrop, German associations representing steel recyclers, secondary raw materials companies, and steel traders say current policy proposals amount to an unprecedented intervention in functioning markets. In a joint letter addressed to European Commission Executive Vice-President Teresa Ribera, the groups argue that initiatives such as the Critical Raw Materials Act and the European Action Plan for Steel and Metals could effectively close off sales to non-EU buyers.

Guido Lipinski, managing director of the steel recycling association BDSV, said policymakers were misdiagnosing the challenges facing primary steel producers. He argued that Europe is not facing a shortage of scrap and that limiting exports would serve mainly to depress prices rather than resolve structural issues in steel production. Observers note that scrap prices already fluctuate with global demand and freight conditions, making them sensitive to regulatory shocks.

Industry leaders also warn that regulatory uncertainty could chill investment. Eric Rehbock, head of the bvse association, said companies may hesitate to commit capital to advanced sorting and processing technologies if access to international markets can be curtailed by political decisions. Ralf Schmitz of the VDM steel traders’ group added that scrap is traded globally, and isolating Europe would erode the sector’s ability to compete while increasing long-term dependency on external suppliers for finished steel products.

Analysts say the dispute highlights a broader tension in EU industrial policy, where efforts to secure domestic supply chains can clash with open-market principles that have underpinned recycling growth. Industry groups argue that export restrictions risk harming medium-sized enterprises that form the backbone of Europe’s recycling system and could slow progress toward climate targets by disrupting material flows.

Similar concerns are emerging beyond the EU. In the United Kingdom, a coalition of steel producers and processors has called on authorities to encourage greater domestic use of scrap steel. 

Britain generates roughly 10 million tonnes of steel scrap each year, with industry estimates suggesting more than four-fifths is exported, raising questions about missed economic and environmental benefits at home.

Looking ahead, European recyclers are calling for stable, investment-friendly rules rather than trade barriers. They say that maintaining open markets, while supporting innovation and decarbonisation, would better align with the EU’s long-term industrial and environmental objectives.

Source: bvse

SUNSHINE Spotlight: Europe’s recycling industry warns that restricting scrap exports could weaken competitiveness and undermine the circular economy without solving steelmakers’ core challenges.