Scrap Steel Export Restrictions Could Potentially Endanger Metals Recycling Industry

The report highlights the economic impact on the UK scrap steel sector due to the ongoing transition to low-carbon EAAFs.

SEATTLE (Scrap Monster): The planned limitations on British scrap steel exports could possibly hurt the metal recycling industry and thousands of workers involved, according to a new paper from Sheffield Hallam University researchers commissioned by the British Metals Recycling Association (BMRA).

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As it switches to electric arc furnaces (EAFs), the UK steel industry is actively pressuring the government to put export limits on scrap steel. The desire stems primarily from persistent worries about 'scrap availability.' The domestic demand for British scrap steel is probably going to rise dramatically as a result of this shift. The steel industry asserted that export limits are necessary for the supply to meet demand.

The ongoing shift to low-carbon EAFs has a significant economic impact on the UK scrap steel industry, according to the paper. A possible export prohibition to non-OECD nations would result in a GVA loss of around £5 billion. It is also thought to affect more than 20,000 direct and indirect jobs.

BMRA cautioned that limiting exports would be shortsighted and might cause the UK to lose out on a substantial period of economic growth. The nation would not be able to take advantage of the anticipated increase in the market for scrap steel worldwide. It further stated that limiting exports of recycled metal would not be a workable approach.