UK warned steel scrap export restrictions will hit jobs

The British Metals Recycling Association (BMRA) and supporters of the UK metals recycling industry have warned the British Government of the dangers of a ban or quotas on the export of scrap steel.

A letter signed by 17 members of the value chain has been sent to energy security and business minister Chris McDonald to highlight the effect such ‘export impediments’ would have on the jobs of those supplying the recyclers.

The move comes as the Government finalises its national steel strategy. The BMRA letter references a recent report from the Centre for Regional Economic and Social Research at Sheffield Hallam University which found that tens of thousands of jobs and billions in economic activity could be endangered if the export of scrap steel is impeded.

Ripple effect

‘It is important to highlight that the impact goes beyond metal recyclers and has a ripple effect to a number of businesses causing significant job losses,’ says BMRA ceo James Kelly. ‘The [Sheffield] report highlights that over 20 000 jobs both within metals recycling and supporting businesses could be lost in a worst-case scenario.’

The report also found that:

• a 1% drop in export value would lead to a £121 million (EUR 137 million) cumulative gross value added (GVA) loss over five years.
• preventing exports to Türkiye, the UK’s largest market, would result in a £2.16 billion GVA loss and hit 6 834 full-time equivalent direct and indirect jobs
• preventing exports to non-OECD countries would cause a £4.9 billion GVA loss and the loss of 20 317 FTE direct and indirect jobs
• services to metals recycling could hit 6 000 jobs across the country

‘Massive effect’ 

One of the signatories is Lefort UK whose md Dave Chapman says: ‘If the government were to impose impediments or restrictions on the export of scrap, it would have a massive effect on our business and the majority of our customers.

‘Export restrictions would restrict the diversity of the industry and reduce opportunities for many of the small to medium sized companies which represent a large proportion of the UK metals recycling industry.’