Global restrictions on steel scrap exports have been strengthened, with one in every three countries implementing policies to limit these exports

Amid global efforts to reduce carbon emissions and promote circular economy goals, many countries now consider steel scrap a strategic resource, leading to export restrictions. Over 70 countries have implemented such policies, with those enforcing or planning to enforce these restrictions producing 77% of the world's crude steel output.

In early industrialized regions such as Europe, North America, and Japan and South Korea, where infrastructure is largely developed, crude steel consumption is relatively stable, leading to an abundance of steel scrap resources. In these regions, up to 70% of steel production is via electric furnaces, making exports a crucial way to utilize these abundant scrap resources. In recent years, major exporters like the European Union have tightened steel scrap export policies to meet decarbonization goals and secure a high-quality domestic supply. The EU's revised Waste Shipment Regulation (WSR), set to take effect in 2024, includes strict measures to control steel scrap exports.

Africa, the Middle East, and Asian countries have implemented restrictions on steel scrap exports primarily because these regions have emerging steel industries, low steel consumption, and limited steel scrap resources. Developing economies like China, currently experiencing rapid construction, are seeing an annual increase in crude steel consumption, leading to a structural shortage of steel scrap resources. This shortage is most evident in densely populated and economically developed regions such as East, South, Central, and North China, which also face a scarcity of medium and high-quality steel scrap.