Recyclers fear global scrap market disruption

The European Commission’s draft list of non-OECD countries risks cutting major Asian markets off from EU recycled metals and disrupting global circular supply chains, the Bureau of International Recycling (BIR) is warning.

The world recycling organisation has issued a statement warning that the EC Commission’s draft delegated act under the EU Waste Shipment Regulation, which establishes a draft list of non-OECD countries authorised to receive certain non-hazardous waste from the EU, could seriously disrupt global recycling markets.

The draft excludes major Asian destinations including India, Malaysia and Thailand from being authorised for recovering ferrous and non-ferrous metal scrap.

BIR’s statement follows widespread and growing concern on social media in recent days among individual scrap traders and recyclers, and other trade organisations (including Recycling Europe, Germany’s recycling associations CMA and BVSE, and India’s MRAI) around the world. They claim the proposed measure would have a devastating impact on scrap trade and businesses.  

Ban on major destinations

BIR says that restricting exports would not automatically create the demand in Europe or the processing capacity needed to absorb the affected grades and volumes. ‘Instead, it could depress recycled material prices, weaken collection incentives and undermine the investment needed to maintain future supplies,’ the organisation states.

Connecting grades

BIR points out that metals retain their intrinsic properties through successive recycling cycles. ‘International trade connects different grades of these valuable materials with the facilities and markets able to keep them in productive use. For aluminium in particular, European supply, demand and processing capabilities do not necessarily match every grade.’

Earlier this year, in its response to the European Commission’s consultation on EU aluminium scrap availability, BIR stressed that Europe generates more recycled aluminium than its domestic facilities can handle. The same concern is being voiced on the Commission’s current proposal.

Robust evidence?

BIR recognises the Commission’s objective of ensuring environmentally sound management. ‘However, any restrictions must be proportionate, grounded in robust evidence and developed through meaningful engagement with affected recycling industries, associations and governments, particularly in non-OECD countries’.

The Commission’s public consultation remains open until 16 October. BIR urges its members, industry associations, businesses and relevant governments to submit factual corrections, evidence and practical case studies showing whether the proposed country and waste-stream authorisations are appropriate.

Resilient supply chains, fair trade

BIR is preparing a consolidated industry response and is ready to work with the Commission, diplomatic missions and relevant authorities. It says its objective is a legislative framework that ‘protects the environment while preserving responsible recycling, resilient supply chains and free and fair trade in recycled materials’.