- New system to track monthly scrap imports, exports
- Commission mulls trade actions; review due by Q3CY’25
On 23 July 2025, the European Commission activated a customs surveillance system to monitor the import and export of metal waste and scrap — including ferrous, aluminium, and copper — across the EU. This move is a core step under the Steel and Metal Action Plan (SMAP), adopted in March 2025, which aims to address rising competitive pressures and secure metal circularity in support of the EU’s 2040 climate goal of a 90% net emissions cut from 1990 levels.
The EU faces a tightening scrap market, with availability declining due to increased exports to third countries.
As per data available with BigMint, the EU’s scrap exports (including intra-EU trade) increased by 4% y-o-y to 10.03 million tonnes (mnt) in Q1CY’25. Exports from the UK totalled 1.85 mnt in Q1CY’25, rising 6% y-o-y. Germany experienced a 5% y-o-y rise to 1.7 mnt in the review period, while the Netherlands witnessed a 6% spike to 1.52 mnt. Other exporters such as Denmark, Poland, Norway, and Sweden also saw y-o-y increases in Q1CY’25 exports.
CY’24 reflects contrasting trend – exports to third countries fall y-o-y
In contrast, in calendar year 2024 (CY’24), exports of ferrous scrap, or recycled ferrous material, by the European Union (EU) and the United Kingdom (UK) to third countries (excluding inter-EU trade) fell by 7% y-o-y to 23 million tonnes (mnt), as per BigMint data.
The decline was driven by reduced shipments to major destinations such as India, Bangladesh, and the United States, while Turkiye increased its intake. Exports by the EU and UK in CY’23 were 24.67 mnt.
Why did EU’s scrap exports shrink in 2024 ?
EU’s crude steel production rises: As per World Steel Association, crude steel production in the EU stood at 129.5 mnt in CY’24, an increase of 2.6% y-o-y. Higher crude steel output necessitated increased scrap consumption by domestic producers.
Scrap collection rates decline: The decline in exports was fuelled by reduced collection rates, with scrap availability dropping from 90.2 mnt in CY’23 to 85-86 mnt in CY’24. Tightening supply limited export volumes, particularly from key exporting countries such as Germany, Belgium, and the Netherlands.
Outlook
The Commission is concerned that global market dynamics — such as the US’s recent 50% tariffs on a wide range of steel and aluminium products (excluding scrap) — could intensify incentives to ship scrap abroad, aggravating the EU’s own supply constraints. To prevent potential scarcity and enhance supply security, the EU will now monitor scrap flows more systematically.
The customs surveillance system will enable monthly tracking of trade flows. The Commission, in consultation with industry stakeholders, is also exploring improved classification of scrap into key categories. A review is expected by end-Q3CY’25 to assess whether further action — such as trade measures — is needed.
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