Europe’s Structural Scrap Surplus

Structural Steel Scrap

In contrast to Italy, where most steel is produced using electric arc furnaces (EAFs), other EU regions rely on blast furnaces, which consume less scrap. The decline in overall steel output—compounded by decarbonization efforts—has left surplus scrap stranded in the supply chain.

Assofermet contends that rather than curbing exports, the EU should protect the viability of scrap recycling businesses, many of which depend on export markets to maintain margins and invest in clean technology.

Opposition to Scrap Export Ban Grows

The association’s stance contrasts sharply with European steelmakers, who are lobbying for an 18 million tonne scrap export ban, especially from hubs like Antwerp. They argue that exported scrap goes to countries without EU Emissions Trading System (ETS) obligations, creating carbon leakage and unfair competition.

“We’ve fought for 11 years to apply a duty equal to the CO2 cost on exported scrap,” said Antonio Gozzi, a leading steelmaker. “We succeeded in Parliament, only to be blocked again by the Commission—mainly due to German opposition.”

Action Plan Falls Short, Says Assofermet

The proposed EU Steel & Metals Action Plan is too vague and overlooks the sector’s biggest issue: shrinking demand. According to Assofermet, focusing on supply-side policy—such as restricting scrap outflows—fails to tackle the root cause of Europe’s steel decline.

“We need to strengthen internal steel demand and avoid further production losses,” the association said in a note. “The current plan barely addresses this.”