The European Commission has kicked off a customs surveillance system tracking the import and export of metal scrap—specifically ferrous waste and scrap (including steel), aluminium, and copper—into and out of the EU. This initiative, launched today, forms a central pillar of the commission’s Steel and Metal Action Plan (SMAP).
SMAP, adopted on 19 March 2025, aims to bolster the competitiveness and environmental sustainability of the EU’s metals sector. A core focus is promoting metal circularity to support decarbonisation and achieve a 90% reduction in net greenhouse gas emissions by 2040 compared to 1990 levels.
The commission explicitly cited a trend of “scrap leakage”, where EU‑origin scrap is increasingly exported to third countries, leading to a decline in domestic scrap availability for recycling. Industry shortages have become a growing concern.
External Pressures and Trade Dynamics
Part of the decline in available scrap has been attributed to rising global primary metal prices, partly driven by the United States’ 50% tariffs on steel and aluminium products (though not directly on scrap). These tariffs are incentivising scrap exports abroad, aggravating supply issues within the EU.
EU smelters, key players in recycling the scrap, have increasingly struggled to secure sufficient feedstock, posing risks to both industrial decarbonisation and operational continuity.
Monitoring for Action
The newly activated customs surveillance will:
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Generate monthly import/export statistics on scrap flows,
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Provide more structured and detailed data to the Commission,
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Inform possible targeted trade measures to ensure stable scrap supply,
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And strengthen the resilience of the EU’s metals industries
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By the end of Q3 2025, the Commission plans to evaluate the collected data and determine if further steps—such as trade defence measures—are necessary. Additionally, the Commission is engaging with industry stakeholders to assess refining the classification of scrap into more granular categories, facilitating better tracking and policy responses.
Broader Implications for EU Industry
This measure fits within a broader EU industrial context that includes protecting strategic metals industries, mitigating carbon leakage risks, and preparing for future trade defence reviews. Similar trade actions may follow if imports are diverted due to global tariff shifts.
For instance, the EU has been considering measures such as reciprocal bans or tariffs on countries restricting scrap exports to the bloc—especially in light of ongoing global diversion risks.
