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| EU Ferrous scrap export ban |
🇪🇺 EU Plans Ferrous Scrap Export Ban to Pressure US on Tariffs
The European Union is preparing a ferrous scrap export ban to the US as part of retaliatory trade measures. If no agreement is reached by September 7, the bloc will halt ferrous and aluminium scrap shipments and impose a 25% tariff on US steel and aluminium from August 7. These actions follow failed negotiations over US-imposed tariffs, which have already reached 50% on key metal imports.
Olof Gill, spokesperson for EU trade, confirmed that the measures received overwhelming support from member states. He stressed that the EU still seeks a diplomatic resolution but remains prepared to act. The countermeasures are staged across four phases, with additional restrictions planned through February 2026.
Ban Would Hit US EAF Mills Dependent on Prime Scrap
The ferrous scrap export ban would immediately disrupt electric arc furnace (EAF) steelmakers in the US, which depend on imported prime grades. Nations like the Netherlands, Poland, and Sweden accounted for 27% of US prime scrap imports through May 2025. Canadian shipments, under USMCA protections, remain unaffected—for now.
Simultaneously, mills are bracing for a 50% tariff on Brazilian pig iron, another core feedstock for flat-rolled EAF producers. These overlapping pressures risk tightening raw material flows and elevating domestic scrap prices in the US. Industry players expect near-term volatility in scrap procurement and pricing strategies.
EU Signals United Front as Metal Trade Tensions Deepen
The ferrous scrap export ban marks a significant escalation in transatlantic metal trade tensions. While aluminium scrap from the EU plays a minor role in US imports—Germany supplied just 1% in 2024—the symbolic impact is substantial. Meanwhile, the US exports little steel and aluminium to Europe, limiting the EU’s direct exposure to US tariffs.
The European Commission warned member states not to pursue separate deals with Washington. A coordinated bloc approach, they argue, strengthens negotiating leverage. The EU postponed its original March countermeasures to allow talks, but now signals limited patience as August and September deadlines near.
ScrapInsight Commentary
The EU’s proposed ferrous scrap export ban could significantly tighten US scrap markets, especially for EAF steelmakers reliant on prime grades. If enacted, the measure may lift domestic scrap prices and accelerate the shift toward alternative feedstocks or sourcing strategies. Policy clarity is urgently needed to prevent procurement disruptions.
