EU Metals Plan Must Look at Energy Prices and Demand for Recycled Metals, not at Export Restrictions
Brussels – The European Commission’s Steel and Metals Action Plan, unveiled today, is a gamble with Europe’s recycling future. Instead of first securing demand for recycled metals, it prioritises keeping “scrap” in Europe, for Europe, by restricting exports, ignoring the fundamental problem: part of Europe’s recycled metals (“scrap”) is exported because of weak domestic demand and limited processing capacity.
There is no shortage of scrap in Europe. The numbers prove it. 80 percent of recycled steel stays in the EU, and the 20 percent exported is surplus – not leakage. The claim of “scrap leakage” is a false narrative. The real problem is Europe’s failure to create demand for its own recycled materials and address high energy prices. Restricting exports won’t fix the steel industry – but it will break European recycling.
“We’ve seen this mistake before. Countries that imposed export restrictions without securing demand saw their recycling industries collapse. In Europe, plastic recyclers are in crisis because trade restrictions were introduced before local demand was in place. Do we want to repeat this failure with metals?”
The Action Plan correctly recognises the need for strong demand for recycled metals, but its timeline is flawed. It proposes export restrictions in 2025, then considers increasing demand in 2026 – the opposite of what’s needed. The EU must first stimulate demand for circular materials in metal manufacturing, and only then consider if trade additional restrictions are necessary alongside the ones from the revised Waste Shipment Regulation. This is especially important because recycled materials are highly diverse, and for certain grades, there is no demand in Europe now, or in the foreseeable future, simply because the market for these products doesn’t exist.
A careful impact assessment is essential before considering potentially catastrophic measures. EuRIC remains committed to closely working with policymakers, industrial value chains, and civil society to shape measures that promote a truly circular, competitive, and low-carbon agenda for steel and metals.
“The Commission’s Steel and Metals Action Plan is a chance to set the record straight and address the real causes behind the steel crisis. Any discussions on exports are a distraction. You cannot force recyclers to keep surplus recycled materials in Europe if there is no one to buy them”, said Julia Ettinger, EuRIC’s Secretary General. “What will be the result of that? A collapse of the European recycling industry, more landfill, more value destruction, and fewer jobs.’’
Source: EuRIC (Brussels, March 19, 2025)
