The United Kingdom is in a position to produce scrap to meet future demand growth as the domestic industry transitions to electric arc furnace steel production. Restrictions on scrap exports, could, however, have a negative impact on prices and potentially threaten the viability of scrap traders, the report noted. The British Metals Recycling/Research Association (BMRA) indicated that the UK steel industry will need between 4.2 and 7 million tons of scrap per year by 2050, but the country currently produces 10.6 million tons of scrap per year.
According to the BMRA, the UK is only maximizing collection and recycling levels through scrap exports. With any trade restrictions, it is foreseen that recycling levels could be endangered.
Referring to the UK Steel report's contention that exports should be regulated under "Better 'environmental' regulations", BMRA highlighted that current regulations mean that waste can only be shipped to countries in the UK and EU that operate to equivalent standards.
BMRA: "The UK Steel industry needs to recognize that scrap is traded globally at a price determined on the international market. The quality of delivered scrap is directly related to the demands placed on it by the buyer. Metal recycling companies will ensure that the UK steel industry invests in further improvements as long as it is prepared to pay for these improved grades."
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