The warning follows the release of a report from Sheffield Hallam University, commissioned by the BMRA, which found that export bans would “erode the fundamental economics” of the metals recycling sector and damage its global competitiveness.
In February 2025, the Department for Business and Trade consulted on the government’s “Plan for Steel”, with some parts of the steel industry advocating for limits to exports in order to secure domestic feedstock.
Billions at risk
According to the research, an export ban to non-OECD countries would reduce gross value added (GVA) by £4.9 billion and cut more than 20,000 direct and indirect jobs.
A ban on sales to Türkiye – the UK’s largest overseas market for recycled metals – would see a £2 billion loss in GVA and cost 6,800 jobs direct and indirect jobs.
The metals recycling industry currently contributes £9 billion to the UK economy each year and employs over 15,000 people directly.
Commenting on the broader economic impact of restricting exports, BMRA CEO James Kelly said: “It wouldn’t just cut tonnage – it would erode the fundamental economics that sustain the sector in a globally competitive environment.
“Curtailing exports would be short sighted and could see the UK miss out on significant growth for an already large industry.”
Scrap availability ‘not an issue’
The report also challenged claims that exports must be curbed to secure future feedstock as steelmaking shifts to low-carbon electric arc furnaces (EAFs).
Unlike traditional blast furnaces, EAFs can use 100% scrap steel.
But even if all UK furnaces switched to EAFs and operated entirely on scrap, the report concluded only two-thirds of the country’s annual scrap supply would be used domestically. More than a third would still need to be exported.
Professor Will Eadson, Professor of Urban and Regional Studies at Sheffield Hallam University, explained: “Our economic models demonstrate why careful thought must be given to any measures which seek to restrict overseas trade – we can see clearly how quotas and bans may lower exports, but at a cost to the overall value of the sector.
“Our research also highlights the need for continued and deeper dialogue between government, metal recyclers, and steel producers to develop policy that meets the needs of all parties.
“Supporting large producers through this transformation will be important to ensuring a prosperous and sustainable future, but we must also recognise the importance of the wider steel supply chain to UK prosperity and security, including the essential role played by the metals recycling sector.”
Steel prices continue to drop
Demand for steel has remained weak, particularly in the domestic market. Ongoing global overcapacity in the sector has also continued to weigh on prices.
Find out more about steel prices in our metals prices index and view our latest market report here.
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