Assofermet: Concerns over impact of EU Steel and Aluminium Plan on recycling

The European Commission’s recently unveiled Steel and Aluminium Plan, presented on 19 March, has sparked debate within the recycling industry, with some stakeholders warning it could have unintended consequences for Europe's circular economy.

The plan outlines potential measures to restrict the export of ferrous scrap from the European Union as early as the third quarter of 2025. The stated goal is to ensure the availability of scrap material within EU borders to support domestic steel and aluminium production.

However, industry representatives have expressed concerns that such restrictions may overlook important dynamics of the recycling sector. According to ASSOFERMET, the Italian national trade association for the steel, metals, scrap, and hardware sectors, the plan could hinder a well-functioning segment of the circular economy without offering sufficient solutions to stimulate internal demand for recycled materials.

While the Commission's proposal suggests that scrap exports are contributing to a so-called "scrap flight," ASSOFERMET highlights that Europe currently generates over 100 million tonnes of recycled steel each year—of which approximately 80% is already consumed within the EU. The remaining 20%, they argue, is surplus that lacks demand within the domestic market and is therefore exported. This export activity, they suggest, plays a vital role in maintaining the economic and environmental balance of the recycling ecosystem.

Critics also point out that the proposed measures come shortly after the adoption of the revised Waste Shipment Regulation in April 2024, which already introduced stricter controls on scrap movement. They argue that further trade limitations, in the absence of incentives for greater recycled content in EU steel production, could have a detrimental effect on recyclers and the broader sustainability goals of the Union.

ASSOFERMET notes that European recycling companies, which operate without public subsidies, have made significant advancements in efficiency and environmental standards through private investment. The association warns that forcing these companies to retain unsold surplus scrap could threaten their viability, potentially leading to job losses and environmental setbacks.

The plan has also been criticised for its focus on supply-side measures, with no clear provisions to boost demand for steel and aluminium within the EU. Stakeholders have called for policy additions such as recycled content requirements in manufacturing, incentives for innovation and energy cost reductions, and sustainability criteria in public procurement.

Source: Assofermet, Photo: Fotolia