UK Metal Recyclers Warn Government: Export Barriers Could Threaten Thousands of Jobs

As the UK Government prepares to finalize its national Steel Strategy, industry groups have warned that restrictions on recycled metal exports could put tens of thousands of jobs at risk. According to a letter sent to Chris McDonald, MP, Parliamentary Under-Secretary of State for DESNZ and DBT, the British Metals Recycling Association (BMRA), along with a number of service providers, highlighted that any impediments to scrap metal exports would not only affect metal recyclers but also have significant repercussions for equipment manufacturers, insurers, logistics companies, and payment service providers.

The letter urges policymakers to carefully consider the economic implications of policies such as export bans or quotas that could disrupt scrap steel exports. It cites a report by Sheffield Hallam University’s Centre for Regional Economic and Social Research, Assessing the Impact of Potential Restrictions on UK Recycled Metals Exports, which found that restricting scrap steel exports could jeopardize tens of thousands of jobs and billions of pounds in economic output.

The report indicated that over a five-year period, even a 1% decline in export value could result in a £121 million cumulative GVA loss. Preventing exports to Türkiye, the UK’s largest scrap steel market, could cause a £2.16 billion GVA loss and result in 6,834 full-time equivalent jobs being lost. Restricting exports to non-OECD countries could lead to a £4.9 billion GVA loss and 20,317 direct and indirect jobs lost. Services supporting metals recycling could also see up to 6,000 jobs disappear nationwide, according to the report.

James Kelly, CEO of BMRA, said, “The report highlights that over 20,000 jobs both within metals recycling and supporting businesses could be lost in a worst-case scenario,” emphasizing that the impact extends far beyond the recyclers themselves. Dave Chapman, Managing Director of Lefort UK Limited, added that “export restrictions would have a massive effect on our business and the majority of our customers,” warning that such measures could reduce industry diversity and limit opportunities for small and medium-sized firms.

According to the report and industry sources, the UK metals recycling sector is vital to the circular economy, supplying high-quality scrap to global markets, particularly Türkiye, which relies heavily on scrap imports for electric arc furnace steel production. Analysts note that export restrictions could increase costs, distort market pricing, and weaken the competitiveness of domestic recyclers, while also reducing demand for collection and processing services throughout the supply chain. Economists have previously observed that while export controls can secure domestic raw material supply, they often lead to market imbalances and reduced investment confidence.

As the Government moves forward with its Steel Strategy, BMRA and its partners urge decisions to be grounded in thorough economic evidence to avoid destabilizing a sector essential to jobs, regional economies, and the UK’s transition to low-carbon manufacturing.

Source: British Metals Recycling Association (BMRA)

SUNSHINE Spotlight: UK policymakers are being urged to carefully consider export restrictions as potential threats to tens of thousands of recycling and support-sector jobs.