International
Recycling News Ferrous Legislation
& Regulations
In an essay prepared by German metals recycling organizations BVSE
and VDM, the two groups say a recently published article prepared by European
steel industry organization Eurofer has “interpreted the steel scrap foreign
trade figures in a very creative way in order to put them at the service of its
own lobbying.”
The two recycling groups say the steelmaking association is using
data from two different timeframes to make a comparison. Write co-authors
Birgit Guschall-Jaik of BVSE and Kilian Schwaiger of VDM:
“If Eurofer puts the scrap export increase of the years 2005 in
relation to 2021, but on the other hand gives the scrap share in crude steel
production exclusively for the past year, then there is a certain gap in
interpretation.
The scrap input ratios have fluctuated only very slightly between
55.6 and 57.6 percent for 10 years. This means that sufficient quantities of
scrap have always been available for the significantly fluctuating cyclical
production volume. By the way, the exports increased since 2005 at about 11
million metric tons, but during this time crude steel production in the EU 27
nations [peaked] at about 30 million metric tons.”
The two groups say throughout the timeframe fluctuations in scrap
import volumes to the EU were also small. “More remarkable were the
fluctuations in exports. This development can be attributed to the lack of
possible uses,” write BVSE and VDM.
Continue the groups, “The quantities not needed by European plants
were exported to consumers in countries, mainly Turkey, where electric arc
furnace (EAF) production has a share of 70 percent. There, the use of the steel
scrap has made its world contribution to CO2 savings.”
The circumstance leads BVSE and VDM to ask: “In this context, the
question arises why there should be export restrictions if there have never
been procurement problems? Why does an organization that is very quick to
threaten politicians with emigration and job losses allow itself to harm raw
material suppliers with such massive market interventions?”
In their essay’s conclusion, the two recycling organizations ask
whether the EU steel industry objections to scrap exports have more to do with
protectionism rather than environmentalism.
“One thing is certain: the scrap trade fulfils its function for
the benefit of the industry. Why destroy functioning mechanisms? Environmental
reasons can only be secondary. It is more likely that the industry no longer
wants to face global competition.
It’s really a shame that this association keeps trying to separate
us, the recycling industry, and our partners, the smelters. The circular
economy can only work if it can take place worldwide. It is a fallacy
that closed markets work. Science teaches that a planned economy is not an
alternative,” write BVSE and VDM.