EuRIC Warns Against EU Restrictions on Scrap Exports Amid Industry Debate

The European Recycling Industries’ Confederation (EuRIC) has cautioned the European Commission against imposing restrictions on scrap exports, emphasizing that such exports are essential to sustaining recycling businesses within the European Union. EuRIC’s statement comes in response to a December 2024 letter from Eurofer and European Aluminium advocating for stricter controls on the export of ferrous and nonferrous scrap.

Eurofer and European Aluminium argued that enhancing recycling of aluminum and steel is critical to the EU’s decarbonization and circular economy goals. The associations highlighted that recycling can save up to 95% and 80% of the energy required for primary aluminum and steel production, respectively, and called scrap “strategic secondary raw materials” crucial for achieving the EU’s objectives. They also suggested integrating export controls into the upcoming Circular Economy Act and utilizing regulations such as the Critical Raw Materials Act to better monitor and limit scrap exports.

EuRIC strongly opposed these proposals, asserting that recycling businesses rely on open markets to thrive. “Closing EU borders for scrap exports will have detrimental consequences for the environment, the economy, and the EU’s competitiveness,” EuRIC said, adding that the availability of recycled scrap has never been a limiting factor for EU mills.

The debate over scrap exports arises as Eurofer and European Aluminium cite a surge in scrap exports as a challenge to Europe’s recycling objectives. Ferrous scrap exports have more than doubled from 9.14 million metric tons in 2015 to 19.43 million metric tons in 2021. Aluminum scrap exports also increased, peaking at 1.3 million metric tons in 2024. The associations argue that these exports represent a loss of valuable raw materials and energy for the EU, urging policymakers to enforce stricter controls to retain resources within Europe.

EuRIC countered that protectionist measures are counterproductive and jeopardize the EU’s circular economy goals. “We urge EU policymakers to preserve open trade and recognize the recycling industry’s critical contributions to the economy and sustainability,” EuRIC said.

Tata Mutual Fund’s Commodity Communique noted that while stabilization in the zinc supply chain is expected, high energy costs in Europe could restrict production capacities. Similarly, the prolonged decline in European steel and aluminum production has raised concerns among recyclers about the EU’s ability to compete globally and transition to a greener economy.

The European Commission is now tasked with balancing competing interests as it formulates policies for the Circular Economy Act. EuRIC’s stance underscores the importance of fostering innovation and maintaining trade openness to support the EU’s recycling sector while achieving long-term sustainability goals.