Imposing administrative restrictions on scrap metal exports from the EU would create a supply glut and give steel mills an unfairly strong position to dictate prices, warns Przemysław Oleś, CEO of Olmet. Such a move could undermine the recycling sector, artificially lower scrap values and weaken the circular economy.
In an interview with WNP.PL, Oleś argued that any export restrictions should be analysed through the prism of the entire market, not just the interests of selected buyers. The EU remains a net exporter of scrap, so closing external markets would increase supply on the internal market without a corresponding rise in demand.
Administrative restrictions could backfire
– The boundary lies where natural competition mechanisms between all market participants are not disturbed – said Przemysław Oleś. – The state should create conditions for industrial development, not artificially restrict trade in raw materials in a way that favours one group at the expense of another.
He stressed that scrap is not a waste product ready for use. It requires costly processes of classification, sorting, cleaning and processing. If prices are artificially depressed by trade restrictions, companies involved in recycling and scrap preparation may become unprofitable.
Recycling sector at risk
– Today the problem is not a lack of scrap, but an insufficient number of modern installations capable of using it efficiently – added Oleś. – Export bans will not create new production capacities, but they could lead to a drop in raw material prices and reduce the profitability of the recycling sector.
This is particularly important for higher-grade scrap classes that require additional processing. If the market cannot cover the costs of preparing such materials, part of the waste stream may cease to be recycled.
Need for investment, not protectionism
– Instead of focusing on administrative export restrictions, we should create conditions that encourage industry to invest in new production capacities – Oleś argued. He pointed to the example of the steel industry in the United States, Australia and Asia, where modern, low-emission mills have been built. The biggest challenges in Europe are high energy prices and limited grid infrastructure.
Oleś concluded that the future of European steelmaking lies not in raw-material protectionism but in investing in green production capacities that can leverage Europe’s advantage of having the best-developed metal recycling market in the world.
Źródło: WNP.PL, Fot. Olmet press materials
