A new study by Sheffield Hallam University, commissioned by the British Metals Recycling Association (BMRA), has warned that restricting UK scrap steel exports could have devastating economic consequences. The findings come as the UK government weighs potential limits on exports, particularly to non-OECD countries, as part of its push toward a low-carbon steel industry based on electric arc furnace (EAF) technology.
Key findings of the report
According to the report, a ban on exports to non-OECD countries would cause nearly a £5 billion loss in gross value added (GVA). Over 20,000 direct and indirect jobs in the metals recycling sector could be at risk. In addition, targeting Turkey, which is the UK’s largest destination for recycled metals, would alone result in a £2 billion GVA loss and over 6,800 jobs lost.
Scrap supply and the green transition
The report stresses that the UK scrap steel supply is more than sufficient for domestic needs. Even if all UK furnaces switch to 100 percent scrap-fed EAF technology by 2050, only two-thirds of annual scrap supply would be required. The remaining one-third would still need to be exported to maintain market balance.
The role of scrap exports
Exports are the backbone of the UK metals recycling industry, which employs over 15,000 people directly, generates £9 billion GVA annually and competes in a global market where demand for recycled steel is rising sharply.
The study highlights that restricting exports would disrupt this balance, weaken competitiveness, and undermine the industry’s role in the global shift toward recycled, low-carbon steel.
Broader implications for economy and climate
The metals recycling sector is a vital pillar of the circular economy and supports the UK’s decarbonization goals. Restricting exports would not only reduce economic output but also weaken the UK’s position in the global recycled steel market, which is projected to expand significantly in the coming decades.
Ultimately, the report highlighted the need for continued and deeper dialogue between government, metal recyclers, and steel producers to develop policy that meets the needs of all parties.