The British Metals Recycling Association (BMRA) has stated that scrap export restrictions, which are expected to contribute to the UK’s net-zero emissions target, would have a catastrophic negative impact on the price of scrap and jeopardize the viability of many metal recyclers. Even if all the proposed electric arc furnaces are commenced, the maximum demand for scrap steel is predicted to be around seven million mt, according to the UK-based trade association UK Steel. Hence, BMRA said that, even at that level of consumption, it would still leave a possible surplus of around three million mt.
Noting that the UK is not stripping itself of a resource (scrap) through exports but simply maximizing its collection and recycling levels, BMRA warned that any restrictions could lead to recycling levels being compromised. The association stated that metal recyclers in the UK only export because the domestic market is not large enough. “As domestic demand grows, metal recyclers will comfortably meet this demand,” BMRA said.