These job losses would come not only among recyclers, but also across the industries that support them.
In a joint letter to Chris McDonald, Parliamentary Under Secretary of State for DESNZ and Department for Business and Trade (DBT), the British Metals Recycling Association (BMRA) and a group of service-sector companies highlighted what they described the negative economic consequences of any policy that impedes the export of recycled metals.
‘Ripple effect’ across the economy
The BMRA explained that export routes are fundamental to the sector’s viability.
The association warned that restrictions, whether in the form of export bans, quotas or other limitations, would not only hit recyclers but also undermine the network of businesses that rely on the sector’s activity.
James Kelly, CEO of the BMRA, commented: “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.
“Over 20,000 jobs both within metals recycling and supporting businesses could be lost in a worst-case scenario.”
The letter stated that service providers such as equipment manufacturers, insurance companies, logistics operators and payment solution firms could all face significant contraction if recyclers lose access to international markets.
Policymakers must use ‘extreme caution’
The intervention comes as the government finalises the UK’s Steel Strategy, an area where ministers have indicated a desire to increase domestic use of UK scrap steel.
While not opposed to domestic growth, recyclers and their suppliers said policymakers must exercise “extreme caution” to avoid damaging a sector that depends on a global marketplace.
BMRA and its partners emphasised that the UK currently produces far more scrap steel than its domestic steelmaking capacity can use. As a result, international exports, particularly to the UK’s largest market in Türkiye, remain essential to maintaining competitiveness and preventing oversupply.
According to the industry, preventing scrap steel exports to Türkiye alone could generate a £2.16 billion loss in gross value added (GVA) and result in 6,834 direct and indirect job losses.
The BMRA said that taken together with impacts on supporting sectors, tens of thousands of jobs and billions of pounds in economic activity could be put at risk if export flows are constrained.
Dave Chapman, Managing Director of equipment supplier Lefort UK, added: “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.”
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