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EU raw materials act will hit scrap trade

Changes to the EU's Critical Raw Materials Act (CRMA) concern the bloc's scrap traders. The latest version of the CRMA report contains details concerning the iron scrap industry, with features that will surprise and challenge many people in the industry.

EU raw materials act will hit scrap trade

Sebastian Will, head of the iron scrap field of the German recycling federation BVSE, said at the MBI Infosource Stahltag Steel Day Conference held in Frankfurt last week that "this situation is almost a blow for us" and that they are afraid of the consequences that the decision will bring.

The European Parliament approved the latest amendments to the report, published at the beginning of September, with 515 votes in favour, against 28 abstentions and 34 objections. The text put to the vote reads: "Within six months of the adoption of this regulation, the commission must submit to both the European Parliament and the council a list of strategic secondary raw materials, including ferrous scrap." It has the phrase: Secondary raw materials include materials and waste that can be reused for a variety of limited purposes that replace natural, unprocessed resources. Restrictions to be observed in the production and use of these secondary raw materials obtained as a result of recycling come to the fore from time to time.

“It will limit exports to Turkey”

Will said political restrictions on ferrous scrap exports threatened to take away overseas markets for EU traders. It will limit exports, especially to Turkey, where the scrap price is determined, he said.

Saying that they will not be able to meet the demands of producers in the EU, Will predicts that they may turn to buying scrap from the USA. "Then the Turks will also make an offer and we will increase to four-digit figures" he warned.

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