Warning of negative impact of restricting recycled steel exports

Export barriers for steel scrap would disrupt markets and weaken Europe’s supply security to little benefit, according to an independent study. 

Conducted by Ernst-Abbe University in Jena, Germany, the study challenges a proposal in the European Action Plan for Steel and Metals to limit the export of recycled steel. It warns that such measures could undermine both the European steel industry and global climate efforts.

‘Wrong tool’

According to the study, export barriers for recycled steel would distort markets, trigger retaliatory measures and weaken Europe’s supply security – without strengthening the EU steel sector. It says that such restrictions are ‘the wrong tool to enhance competitiveness or accelerate decarbonisation’.

Julia Ettinger, secretary-general of recycling industry body EuRIC, says the study confirms what recyclers have long argued. ‘The EU should rather focus on real solutions, lower energy costs and investments in high-quality recycling rather than turning to protectionism,’ she argues.

Guido Lipinski, md of Germany’s steel recyclers association BDSV adds: ‘Europe’s recycling industry is globally competitive. Export restrictions would undermine that competitiveness.’

Key findings of the study:

• Recycled steel is a continuously available raw material that should be fully utilised
• Each tonne of remelted recycled steel avoids approximately 1.66 tonnes of CO₂ emissions, regardless of where it is used
• Europe’s net exports reflect relatively low domestic demand rather than oversupply
• The EU still relies on imports of high-quality recycled materials such as stainless steel scrap.
• Future challenges will focus more on the quality of recycled steel than on quantity.
• Scrap trade is highly sensitive to cost changes; trade barriers could divert flows away from Europe.
• Export restrictions carry trade policy risks, including retaliatory measures, restricted access to high-quality imports, reduced global use of scrap and potentially higher global CO₂ emissions.

The study concluded that EU policy should address structural challenges – such as high energy costs – while accelerating sorting and pre-processing, standardising quality and certification, and supporting investments that improve recycled steel quality and stimulate market demand.

Prof. Dr. Frank Pothen, the study’s author, will present the main findings at the European Recycling Conference 2025 in Hamburg on 1 October.