Trade Association members say it is a risky move to impede the export of recycled metal from the UK
The British Metals Recycling Association (BMRA), the voice of the UK metals recycling industry, and a number of its service members have written to Chris McDonald, MP, Parliamentary under Secretary of State for DESNZ and DBT, to highlight the impact of export impediments to jobs of those that supply metal recyclers.
The letter outlines that not only would any kind of impediment to the export of recycled metal negatively impact the metals recycling industry but also cause job losses to suppliers such as equipment manufacturers, insurance providers, logistics companies, and payment solutions.
As the Government finalises the United Kingdom’s Steel Strategy, BMRA and service providers to the metals recycling industry are urging policymakers to use extreme caution towards implementing policies, including export bans and quotas which could impede the export of scrap steel.
“It is important to highlight that the impact goes beyond metal recyclers and has a ripple effect to a number of businesses causing significant job losses,” said James Kelly, CEO, BMRA. “The report highlights that over 20,000 jobs both within metals recycling and supporting businesses could be lost in a worst-case scenario.”
The report, Assessing the impact of potential restrictions on UK recycled metals exports published by the Centre for Regional Economic and Social Research at Sheffield Hallam University, found that tens of thousands of jobs and billions in economic activity could be endangered if the export of scrap steel was impeded.
Over five years:
- A 1% drop in export value would lead to a £121 million cumulative GVA loss
- Preventing exports to Türkiye - the UK’s largest market - would result in a £2.16 billion GVA loss and 6,834 full-time equivalent (FTE) direct and indirect jobs lost
- Preventing exports to non-OECD countries would cause a £4.9 billion GVA loss and 20,317 FTE direct and indirect jobs would be lost
The report further illustrates that services to metals recycling could lose 6,000 jobs across the country.
Dave Chapman, Managing Director of Lefort UK Limited, said: “If the government were to impose impediments or restrictions on the export of scrap, it would have a massive effect on our business and the majority of our customers. Export restrictions would restrict the diversity of the industry and reduce opportunities for many of the small to medium sized companies which represent a large proportion of the UK metals recycling industry.”
Signatories to the letter are:
Bunting Clear Insurance Management Ltd
Conquest Shipping Green Car Depollution Ltd
HOWDEN Inbrit Logistics Limited
Lefort UK Limited Lindemann Germany GmbH
Lumon Magnetic Separations Ltd
McIntyre (JMC Recycling Ltd) Metchem Marine Logistics Ltd
Miro Logistics Limited Molson Group
Nova Recycling Solutions SGM Magnetics UK
TOMRA Sorting Ltd
Media Contact:
Kate Magill – BMRA
e. [email protected]
Notes to editors:
The British Metals Recycling Association (BMRA) represents the £7 billion metals recycling sector, which comprises an estimated 2,000 businesses and employs over 15,000 people. The industry trades and processes 11.5 million tonnes of ferrous and non-ferrous metals every year. On average, the UK exports between 70%-80% of all scrap arisings in the UK.
Scrap metals are secondary raw materials whose use reduces the demand for precious natural resources needed to make new metal compounds – such as iron ore in steelmaking; nickel in stainless steel; or alumina and bauxite in aluminium smelting.
For example, every tonne of recycled steel saves:
- 1.5 tonnes of iron ore
- 1.5 tonnes of carbon dioxide
- 0.5 tonnes of coal
- 70% of the energy
- 40% of the water