BMRA Warns of ‘Catastrophic’ Effects Arising Out of Scrap Export Restrictions

SEATTLE (Scrap Monster): The British Metals Recycling Association (BMRA) has warned that the proposed restrictions on scrap steel exports from the country by UK Steel could lead to ‘catastrophic’ impacts.

According to the trade body representing the metal recycling sector in the UK, the recent shift to electric arc furnace (EAF) steelmaking funded by the government, has prompted UK Steel to call for ban on exports of scrap steel. Incidentally, EAF steelmaking process uses steel scrap as feedstock.

RELATED NEWS:

BMRA Raised Red Flag Over Surging Scrap Metal Thefts

BMRA Calls for Active Steps to Thwart Scrap Yard Fires

The UK government had provided funding support to Tata Steel towards modernizing the Port Talbot facility by switching over to EAFs. Also, British Steel plans to switch to EAFs at its plants in Teesside and Scunthorpe.

The BMRA warned that restrictions imposed on exports of scrap would have ‘catastrophic negative impact’ on prices of the commodity. Moreover, it would cause threat to the viability of several metal recyclers in the country.

The association projected that the maximum domestic demand for scrap steel in 2050, in the event of all proposed EAFs becoming online, is around 7 million tonnes. This could leave a surplus of around 3 million tonnes, which will have no market at all if the scrap export trade is restricted. It called upon the government to boost investments in beat available technologies so as to encourage quality scrap recycling.