Recyclers find policy in the driver’s seat

The keynote speaker at the Bureau of International Recycling (BIR) convention in Bangkok in late October attempted to put a positive spin on government policies being enacted around the world to stem the flow of minerals, metals and other resources, saying recyclers were poised to benefit from the materials’ increased value.

The points made by Washington-based corporate and political consultant Juan Verde could indeed bring opportunities and business growth to recyclers and traders.

As of 2025, however, tariffs and potential export bans in place or proposed in different parts of the world present far more challenges to the cross-border traders who have long comprised the core membership of the Brussels-based BIR, an organization devoted to the health of free and fair trade.

Attempts to keep global markets in place

In a post-World War II era in which globalization largely has gained momentum, measures by governments around the world are contributing to protective barriers and decreased cross-border activity threatening to make recycled materials less of a global market and more of a regional one.

“Policymakers involved in putting these kinds of policies forth don’t yet have an understanding of how the market for recycled materials is fundamentally different from the market for primary materials, and that impacts what they expect to get out of their stated objectives when it comes to these policies,” Emily Sanchez, chief economist at the Recycled Materials Association (ReMA), based in Washington, said in the BIR Stainless Steel & Special Alloys Committee meeting in Bangkok regarding proposed scrap export bans.

Trade restrictions on recycled materials exports tend to trigger retaliatory measures that can create a “race to the bottom” and fragmented markets that don’t serve anyone, according to Sanchez.

“The real risk is that these types of measures can become entrenched, and—once entrenched—it’s really hard to reverse,” she said.

Mahiar Patel, managing director of the Singapore office of Germany-based Cronimet Group, told delegates tariffs on inbound metal in the U.S. could boost metals production there and reduce the nation’s scrap surplus and exports.

At the Non-Ferrous Division meeting, Jessica Fung of London-based consulting firm Project Blue reviewed the pricing gyrations, arbitrage and shifting warehouse material characteristics that defined the copper market during much of this year.

In the U.S., imports of refined copper increased sharply in the months before proposed tariff measures were due to take effect in August.

Policy impacts that rippled through metals, paper and plastic markets were widespread in 2025, with many convinced 2026 will look similar.

Causes and effects

Decarbonization and sustainability factors have convinced many observers the future of recycled steel is bright as the energy- and emissions-saving aspects are well-documented.

Figures gathered by the statistics adviser to the BIR Ferrous Division, however, reveal that less recycled steel was melted globally in the first half of this year compared with the prior year.

The U.S., in particular, reduced its recycled steel exports by 16.6 percent in the first half of this year compared with early 2024.

While one could look at recent steel output figures in the U.S. and see a connection to increased domestic mill demand for ferrous scrap, steel production in the U.S. grew by just 0.6 percent in the first half of this year compared with the first half of 2024.

Turkey has long been the leading destination for recycled steel exported from the U.S. but mills there purchased 19 percent less ferrous scrap from the U.S. in the first half of this year compared with a year earlier.

A combination of currency exchange rates, an abundance of semifinished steel leaving China and policy issues resulted in Turkish mills favoring imported billets and slabs, domestic scrap and European purchases in the first half of this year.

Trade measures are as present in the copper market, which Inge Hofkens, chief operations officer with Germany-based Aurubis AG, mentioned prominently at the Non-Ferrous Division meeting.

Hofkens said she is seeing changes in global nonferrous scrap flows now more than she has in the 30 years she has been in the metals industry.

“If some regions keep markets open, while others close their borders and at the same time buy large volumes of metals in other jurisdictions, this puts international trade and ultimately our circular economy at risk,” she said. “If we as industry players are fragmented and not united, others will define our future. If we stand together, we will define our future ourselves.”

Hazards of the job?

Beyond resource nationalism, environmental protection and health measures continue to influence how recycled materials are traded and perceived by governments and some nongovernmental organizations (NGOs).

The cross-border trading of electronic scrap, some types of which contain hazardous materials, long has been the focus of NGO and United Nations scrutiny. In recent years, discarded plastics have been added to the watch list and, this year, traders of shredded, recyclable metal have found themselves drawn into the conversation.

The UN Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and Their Disposal treaty was forged in the late 1980s and early 1990s, with most of the world (the U.S. being one exception) signing on by 1992. The treaty established a prior informed consent (PIC) procedure for the export of hazardous waste and was expanded in 2019 to cover plastic scrap materials. Now, commonly traded recycled metals are in the crosshairs of Basel Convention authorities.

At BIR’s International Environment Council meeting in Bangkok, the organization’s Trade and Environment Director Alev Somer said BIR is seeking to stave off and eliminate the unwanted consequences of amendments to the Basel Convention tied to the shipping of shredded metal from appliances, such as washing machines and dryers, that might contain trace amounts of circuit boards and, thus, have been placed under the electronic scrap umbrella.

Since January, Asian nations have at times enforced a PIC procedure designed to prohibit such exports unless the receiving country and countries en route on the freight vessel’s course have agreed to the trade in advance and have satisfactory treatment facilities.

Somer said neither a washing machine nor its motors are considered hazardous for shipping regulations. However, under the latest PIC amendment, shredded metal fractions that had been listed under an acceptable Basel Convention code now are classified under an unacceptable Y49 designation. Reported consequences include customs officials in Asia impounding containers of zorba, claiming they had been “misdeclared.”

The UN Basel Convention organization has established a working group to review its amended technical guidelines. According to Somer, BIR is involved with that group, where it is arguing the result of the amendment goes beyond what the tr

eaty intended. As with each trade issue currently roiling the global recycling sector, uncertainty created this year appears to be poised to prompt secondary commodity traders to make ongoing adjustments again next year.

The author is senior editor at the Recycling Today Media Group and can be reached at btaylor@gie.net.