The European Steel Association (EUROFER) has released a joint statement with European Aluminium to call upon the European Commission to take immediate and effective measures to tackle scrap leakage in the region. The joint letter stated that enhancing aluminum and steel recycling is crucial not only for the decarbonization of their value chain but also for achieving the EU’s circular economy objectives. Recycling can save up to 95 percent and 80 percent of the energy required for primary aluminum and steel production, respectively.
Ferrous scrap exports from the EU more than doubled over the last few years to 18.92 million mt in 2023. Thus, the volume of scrap that could and should be recycled in Europe is drastically diminishing due to increasing scrap exports, the joint statement said. Retaining the volume of ferrous scrap exported in 2023 within the EU would contribute to the region’s green transition and energy security as the first industrial-scale decarbonization projects begin operating by 2026, it added.
According to the associations, scrap leakage creates a missed opportunity for Europe’s decarbonization, strategic autonomy and competitiveness ambitions. Reversing this trend would also help incentivize European investments and recycling. “We call on the Commission to welcome our requests and enable our companies to scale up their recycling capacity and production and advance in their decarbonization efforts,” the letter said.