BDSV, VDM warn against EU scrap export ban

The Federal Association of German Steel Recycling and Disposal Companies (BDSV) and the Association of German Metal Traders and Recyclers (VDM) have commissioned and published a new study they say helps portray the negative effects of export bans on ferrous scrap.

The study was conducted in part as a response to a proposal in the European Action Plan for Steel and Metals (SMAP) to possibly restrict the export of recycled steel, concluding that such measures would undermine both the European steel industry and global climate protection efforts, according to the Düsseldorf-based BDSV and the Berlin-based VDM.

The study was conducted by the Ernst Abbe University of Applied Sciences in Jena, Germany, and concludes that export barriers to recycled steel would distort markets, trigger retaliatory measures and undermine Europe's supply security, yet would do so without strengthening the EU steel sector.

BDSV and VDM say then study shows that an export ban and other such barriers are the wrong tool to increase competitiveness or drive decarbonization.

The university researchers found that recycled steel is continuously available and not in short supply and that Europe’s level of net exports reflects low domestic demand caused by lofty mill energy costs.

Additionally, according to BDSV and VDM, Europe remains dependent on imports of some recycled materials, including stainless steel scrap.

“The quality of recycled steel, not the quantity, is likely to be the biggest challenge in the future,” the study finds.

Export barriers, when imposed, pose trade policy risks, including retaliatory measures, the risk of restricting access to needed imports and a reduction in global scrap use, which could result in an increase in global CO₂ emissions, BDSV and VDM say.

“The European recycling industry is globally competitive," BDSV Managing Director Guido Lipinski says. "Export restrictions would affect this competitiveness while the diversion of non-European trade flows would not have a positive impact on the supply of European consumers, which is not at risk.

Based in part on the study’s findings, the two groups say instead of restricting exports, EU policies should address the challenge of high energy costs and focus on accelerating sorting and presorting and other investments that improve the quality of recycled steel.

“This study confirms what recycling companies have been saying for a long time: export restrictions on recycled steel are the wrong tool,” says Julia Ettinger, secretary-general of the Brussels-based European Recycling Industries Confederation (EuRIC). “The EU should focus on real solutions—reducing energy costs and investing in high-quality recycling—instead of turning to protectionism."

Additional details gathered by the study will be presented by Dr. Frank Pothen at the European Recycling Conference 2025, which will take place in Hamburg, Germany, Oct. 1.