European Union is known as a significant supplier of steel scrap, which soon could be an importer of steel scrap. The use of steel scrap is increasing as the global steel industry is shifting towards electric arc furnaces. Annual exports of this raw material by the EU are 18 million tons. European steel producers are worried about increasing steel exports and have tried to ban it but have limited success.
International Rebar Producers and Exporters Association (IREPAS) has expressed the need to control carbon emissions, and the shortage of this raw material will cause the EU to be a steel scrap importer in the next five years.
EU has imposed Carbon Border Adjustment Mechanism (CBAM) to set the prices of products exported to the EU by Non-EU countries. European Parliament has also approved the amendment in the Waste Shipment Regulation (WSR) that the EU will ship metal scrap ferrous or non-ferrous) only to countries that will fulfill the safe management criteria.
70+ countries have taken measures to restrict the outflow of this critical raw material to fulfill the country’s demand. Few have imposed partial restrictions, and others altogether banned the exports. European Commission will also have a check on the export of scrap to OECD countries.
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