New study finds export restrictions on recycled steel would backfire
A new, independent study challenges the European Steel and Metals Action Plan’s (SMAP) proposal to potentially restrict exports of recycled steel (‘scrap’), concluding that such measures would undermine both Europe’s steel industry and global climate efforts.
The study, carried out by Ernst-Abbe-Hochschule Jena, finds that export barriers on recycled steel would distort markets, trigger retaliation, and undermine Europe’s security of supply – without strengthening the EU steel sector. It concludes that such barriers are the wrong tool to boost competitiveness or drive decarbonisation, highlighting the following arguments:
Key findings:
- Recycled steel is a continuously available raw material that should be fully used.
- Each ton of recycled steel remelted avoids approximately 1.66 tons of CO2 emissions, regardless of where it is used.
- Europe’s net exports reflect low domestic demand rather than oversupply.
- The EU still relies on imports of high-grade recycled materials like stainless steel ‘scrap’.
- The quality of recycled steel, not the quantity, is expected to be the key challenge in the future.
- Since ‘scrap’ trade is highly sensitive to cost changes, trade barriers can divert flows away from Europe.
- Export barriers carry trade policy risks, including retaliation, risk cutting access to high-quality imports and lowering global ‘scrap’ use, and potential increases in global CO2 emissions
The study suggests that instead of restricting exports, EU policy should tackle structural challenges such as high energy costs, while accelerating sorting and pre-sorting, standardising quality and certification, and supporting investments that improve the quality of recycled steel and boost market demand.
Julia Ettinger, EuRIC’s Secretary General said: “This study proves what recyclers have long been saying: export restrictions on recycled steel are the wrong tool. The EU should focus on real solutions – lowering energy costs and investing in high-quality recycling – instead of turning to protectionism.”
Guido Lipinski, Managing Director and Lawyer, BDSV, said: “The European recycling industry is competitive on a global scale. Export restrictions would damage this competitiveness, while the diversion of non-European trade flows would have no positive effect on the supply to European consumers, which is not under threat.”
Prof. Dr. Frank Pothen, author of the study, will present the major findings during the European Recycling Conference 2025, taking place on 1 October 2025 in Hamburg.
