Geopolitics now a key trade factor says BIR

The recycled steel industry is increasingly being defined by geopolitics amid trade disputes, wars and policy changes, according to a senior industry figure.

Shane Mellor, president of BIR’s ferrous division, notes in the latest BIR Mirror that recyclers ‘work in an environment defined not only by economic volatility and structural transition but also increasingly by geopolitical realignment’.

‘Trade tensions, regional conflicts, shifting alliances and industrial policy interventions are reshaping supply chains and redefining the parameters within which our industry operates.’

Resilience

Mellor notes that the data presented in the quarterly Mirror demonstrates both the resilience of the sector and the scale of adjustment taking place across regional markets.

‘At a time when governments are prioritising energy security, resource efficiency and carbon reduction, these figures underscore why our Ferrous Division continues to champion the term “recycled steel”, clearly communicating the environmental value and strategic importance of recycled material within national and international policy frameworks.’

He notes that China’s reduced recycled steel usage, evolving import dynamics in Turkey, export adjustments in Europe, supply tightness in the USA and structural pressures in Germany illustrate an industry responding to economic uncertainty, regulatory change and shifting trade flows.

‘At the same time, geopolitical fragmentation and the increasing use of trade instruments – including tariffs, safeguard measures and carbon border mechanisms – are altering traditional commercial routes and adding new layers of risk and compliance.’

Lower consumption

The Mirror also includes a regular report from BIR’s statistics advisor Rolf Willeke. In the first nine months of 2025, he points out, recycled steel consumption was lower year-on-year in China, the EU-27, the USA, Japan and South Korea but higher in India and Türkiye.

China retained its position as the world’s largest user of recycled steel despite a 13.3% decline, compared to a 3% year-on-year fall in the country’s crude steel production. India’s recycled steel usage growth of 16% outstripped the 10.5% increase in its crude steel production.

Similarly, Türkiye recorded a 4.3% gain in its recycled steel usage whereas crude steel production edged only 0.7% higher.

Despite a 6.8% decline in the first nine months of 2025 to 13.988 million tonnes, Türkiye maintained its position as the world’s foremost recycled steel importer. India was the world’s second-largest importer in the first nine months of 2025 with an increase of 2.8%.