The introduction of export restrictions on scrap metal is becoming a new trend in the global metallurgy industry. The full text of the GMK Center study “Export Restrictions on Scrap Metal Worldwide 2025” is available at the link. The European Union is developing and planning to implement additional restrictions on the export of scrap metal, particularly through the European Steel and Metals Plan, which was approved in March 2025.
This is reported by Business • Media
According to this plan, by the third quarter of 2025, the European Commission is expected to consider the possibility of introducing new restrictions on scrap metal exports. The very idea of restricting the export of scrap metal in the EU cannot be considered new: in March 2024, the European Council amended the Regulation on Waste Transport, limiting the export of safe waste, including scrap, to countries outside the Organisation for Economic Co-operation and Development (OECD). The new rules will come into effect in May 2027 and will become a technical barrier, as non-OECD countries with the appropriate documentation will still be able to continue importing scrap from the EU.
Discussion and Consequences of Scrap Metal Export Restrictions
The inclusion of the issue of export restrictions on scrap metal in the EU Action Plan is linked to discussions among stakeholders. This resembles similar discussions in Ukraine and relates to the balance between domestic use and export of scrap metal.
“EU metallurgical associations emphasize the need to keep scrap within Europe for domestic processing, as it is a strategic resource for reducing the carbon footprint.”
They stress that scrap is essential for achieving decarbonization and energy efficiency goals in the industry, but they are concerned about the potential leakage of scrap metal to third countries, which could exacerbate global steel production surpluses.
On the other hand, representatives of scrap metal collection organizations, such as EuRIC and BIR, oppose any export restrictions. They argue that there is enough scrap metal in Europe for domestic production, with 80% of collected scrap remaining in the domestic market, while some is still exported due to insufficient domestic demand. According to their estimates, this does not complicate the situation regarding scrap metal supply and is important for supporting the collection and recycling industry.
Global Trends and the Ukrainian Context
It is projected that global demand for steel scrap will increase by nearly 50% by 2050, with major steel-producing countries—specifically the EU, the USA, China, and India—boosting their domestic consumption of scrap metal. At the same time, experts estimate that in 2023, global scrap consumption was about 650 million tons, of which only 15% was supplied through international trade. The majority, specifically 54%, is satisfied by domestic supplies, highlighting the importance of establishing stable domestic sources of scrap metal.
Ukraine, which has its own history of introducing export restrictions on scrap in the form of quotas, tariffs, and licenses, is now considering the possibility of implementing a zero quota on its export. This decision must take into account the interests of the Ukrainian economy and long-term trends in the global steel and scrap metal market. As Ukraine seeks to become a member of the European Union, its legislation must align with European policy to facilitate further integration and ensure a stable supply of scrap metal for the domestic metallurgy industry.