The UK steel industry wants scrap steel exports to be limited so that it can be melted down domestically and used in new steel production. However, the British Metals Recycling Association (BMRA) warns that banning scrap steel exports to developing countries could cost the economy £5 billion and result in the loss of 20,000 jobs.
In 2023, most of The UK’s 5.6 million tonnes of steel production came from high-carbon blast furnaces in Port Talbot and Scunthorpe, which operate on iron ore mined from underground. Both facilities are set to transition to electric arc furnace (EAF) technology in the coming years, allowing them to melt scrap and produce lower-carbon steel.
Currently, around four-fifths of the UK’s scrap steel, collected from old cars, buildings, and bridges, is sold overseas, where it is typically melted down in EAFs and reused in steelmaking.
Scrap steel demand set to rise
UK Steel forecasts that demand for scrap steel will rise by 70% by 2027, and with Port Talbot’s new EAF coming online, demand is expected to triple by 2050 compared to 2023 levels. For this reason, the lobby group has called for restrictions on scrap exports to non-OECD countries. According to BMRA, OECD members are able to demonstrate that they process waste sustainably.
However, BMRA data shows that four of the UK’s top five scrap steel export destinations are not OECD members, and proving environmental standards in developing economies is likely to be difficult.
Professor Will Eadson of Sheffield Hallam University said restrictions would bring costs to the sector:
“Any measure aimed at curbing overseas trade should be considered carefully. Quotas and bans may reduce exports, but they would impose costs in terms of overall sectoral value.”
BMRA Chief Executive James Kelly also stressed that limiting exports would weaken the industry:
“Exports are the lifeblood of the UK metals recycling sector. Restricting them risks missing out on growth opportunities in a sector that contributes £9 billion in value annually and directly employs 15,000 people.”
UK Steel statement
UK Steel officials said their proposals aim to “secure a higher quality and greater volume of scrap steel supply” to help the UK achieve its net-zero steelmaking goals.
They stated:
“We have never called for a total ban on scrap steel exports. Free and fair trade is one of the cornerstones of the UK steel industry. The real need here is for a proportionate environmental regulatory framework that ensures scrap steel is processed to the same high standards wherever it is exported.”
Source: The Guardian
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