Written submission from British Metals Recycling Association (BMRA) (PRO0110)

The Business and Trade Committee has launched a call for evidence relating to the priorities of the Committee for 2026. This response is published on behalf of the British Metals Recycling Association (BMRA). It argues that the Committee should thoroughly consider the potential economic impact of the Steel Strategy on the UK metals recycling industry. The response states that though the Government’s upcoming Steel Strategy could stimulate UK circularity and drive-up demand for recycled metals, a large surplus of scrap metal will remain. As such, policies which artificially supress the movement of recycled ‘scrap’ metals would contribute towards a loss of thousands of jobs, a deterioration in GVA, and a build up of waste deposits presenting major difficulty in storage and disposals. The response also calls for the inclusion of metal recyclers in the British Industrial Competitiveness Scheme, based on the contributions the metal recycling sector makes to resource efficiency and circularity.

UK Steel Strategy

BMRA believe the Committee should consider the potential economic impact of the Steel Strategy on downstream and upstream partners to steelmakers.

BMRA has recently commissioned research by the Sheffield Hallam University which highlights the significant economic consequences of potential metal export restrictions on the steel industry and wider metal recycling sector.  

 The research finds that: 

• A 1% drop in export value would lead to a £121 million cumulative GVA loss.  
• A restriction of 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.
• A non-OECD export restriction would cause a £4.9 billion GVA loss, and 20,317 FTE direct and indirect jobs would be lost.

Consultation with individual businesses reinforced the key messages from the economic modelling. Businesses’ main points were:

• The metals recycling market is in a particularly turbulent and volatile period, which would likely exacerbate the effects of any new policy changes.
• Exports are critical to business operations and internationally, markets are varied, with ferrous and non-ferrous markets differing substantially.
• There is no straightforward policy option to support greater retention through export restrictions without risking the functioning of the sector.
• There is already a capacity problem for disposing and storing residual waste. A wider scrap metals surplus (with potentially no domestic outlet) creates additional pressure on waste disposals and storage facilities.

Potential metal export restrictions therefore pose several important questions for the Business and Trade Committee to consider: how businesses in the recycled metals sector could be supported in the event of such a deterioration in GVA and job losses, and whether the UK has the capacity to environmentally manage a substantial scrap metals surplus.

The Government’s upcoming Steel Strategy, expected in December 2025, could stimulate UK circularity by catalysing private investment in manufacturing and, subsequently, drive up demand for recycled materials. However, it is extremely unlikely full circularity will be attained for most of the material streams BMRA members produce – notably steel.

Even if all proposed EAFs are switched on by 2050, the maximum demand for scrap steel is predicted by UK Steel to be around 7 million tonnes per year.  The industry currently processes over 10 million tonnes of scrap steel annually, with production levels expected to rise. 

Given the scale of the current, and potential, excess supply compared to the demand, further complicated by commodity markets which recycled materials are traded on, it is imperative careful consideration is given to policies which could artificially supress the value of these materials.  

Furthermore, there are concerns that the forthcoming Strategy could include restrictions or impediments to scrap or recycled metal exports, which would have far-reaching negative consequences for the recycling and wider industries.

BMRA therefore encourages the Business and Trade Committee to recognise these significant risks and to consider the economic impact of the Steel Strategy on the metals recycling industry.

Eligibility for the British Industrial Competitiveness Scheme

BMRA also recommend that the eligibility criteria for the British Industrial Competitiveness Scheme explicitly includes metal recyclers, which will, in turn, support the UK’s transition to a low-carbon economy. Metal recycling significantly reduces energy consumption and emissions compared to primary production, contributing to resource efficiency and circularity. Including metal recyclers within the scope of the scheme would ensure that these businesses can access support to invest in innovation and competitiveness, aligning with the UK’s industrial decarbonisation objectives.

British Metals Recycling Association

BMRA is the trade association representing the UK metal recycling sector, which produces £9bn in GVA annually, and provides over 15,000 jobs across over 2,000 businesses. The sector trades, processes, and recycles 11.5 million tonnes of ferrous and non-ferrous metals in the UK every year including steel, aluminium and copper. The industry also currently processes over 10 million tonnes of scrap steel annually, with production levels expected to rise across the decades.