The European Commission this week activated its customs surveillance system to watch trading flows of metal scrap in to and out of the trading bloc.
This follows the steel and metals action plan that was presented in March, which the commission said was to address the competitiveness of the EU's metals industries and promote circularity and decarbonisation.
Officials will use the tool, which collects and analyses customs data, to monitor the EU's imports and exports of aluminium, copper and steel scrap, and to gather "structured and detailed information" on trade flows.
Information can help decision makers to take targeted trade measures for ensuring sufficient supply of scrap, the commission said, adding that it will use the data to assess if further action is required by the end of September.
The assessment must consider quantity and quality of metal exports and imports, Olivier Francois, president of European recycling body EuRIC said in a statement today.
"To have a full picture, the EU will also need to monitor the imports of primary materials competing with recycled materials, such as [sponge iron] or direct reduced iron, which have exponentially surged since the beginning of the year, as well as the EU's forecasted production capacity," Francois added.
"This is essential to avoid introducing measures that could unintentionally harm the competitiveness of the European recycling industry without improving circular materials' availability for EU manufacturers."
The commission also said the EU is experiencing a decline in metal scrap availability because of "leakage" to third countries, a notion that metal recycling industry groups have refuted. EuRIC repeated today that exports have kept recyclers going as it offsets structural and declining EU demand.
While the introduction of 50pc tariffs by the US on steel and aluminium products, excluding scrap, may "further worsen this issue as rising global prices of primary materials increase the incentive to export scrap abroad", the commission said.
The commission will also work with industry stakeholders on assessing the advancement of classification of scrap into key categories.
EuRIC said it and its members will engage with the commission to ensure future measures are proportionate, informed and supportive of Europe's green and industrial goals.
