WILLEBROEK, Belgium — In the bustling environment of a major scrap yard located just south of Antwerp, the process referred to as “urban mining” is taking shape. Here, towering mounds of discarded appliances, construction debris, and car skeletons dominate the landscape. A massive metal shredder stands silent, while trucks continuously shuttle between these heaps, sorting through hundreds of metric tons of aluminum and steel fragments. These materials are prepared for recycling at a nearby waste treatment facility, where they are subjected to a meticulous process of separation involving water and chemicals to extract valuable metals from unwanted debris.
This site may not boast glamour, but its strategic significance cannot be overstated. The Belgian Scrap Terminal operates as a crucial player in Europe’s recycling landscape, processing up to 1.5 million metric tons of scrap metal annually across eight facilities in Belgium, France, and Luxembourg. This staggering volume is sufficient to produce over a million family cars, underscoring the importance of recycling in the continent’s industrial fabric.
Recycled metals: A lifeline for struggling manufacturers
Within these heaps of discarded metal lies a potential lifeline for Europe’s beleaguered manufacturing sector, which faces soaring energy costs and inconsistent access to raw materials. The hope is that a readily available supply of recycled metal can drive down production costs, enhance sustainability, and improve competitiveness. However, many manufacturers express frustration that a significant portion of this recycled metal is sold to non-EU countries.
“We are shooting ourselves in the foot,” says Aurelio Braconi, director for stainless steel and raw materials at Eurofer, pointing to the disadvantage Europe faces by exporting raw materials only to import finished products.
As global demand for scrap metal surges—due to its lower melting costs and reduced energy requirements—prices have skyrocketed. The market value for a ton of steel scrap currently hovers around €300, with aluminum reaching as high as €1,800. Buyers from overseas, benefiting from cheaper energy and less stringent environmental regulations, are often willing to pay more than European manufacturers, further complicating the domestic market.
A fragile industrial landscape
This situation is exacerbated by the deterioration of Europe’s heavy industry, now precariously positioned amid rising energy prices following the conflict in Ukraine and intensified competition from low-cost producers in Asia and elsewhere. The European steel sector, which produces over 126 million metric tons of steel annually, contributes approximately €130 billion to the EU economy and employs over 2 million people. However, this industry has experienced nearly a 20 percent decline in production from 2014 to 2023 due to these economic pressures.
In response, the European Commission recently introduced a comprehensive strategy titled the Clean Industrial Deal, aimed at revitalizing heavy industries, emphasizing recycling and reuse as crucial components of this effort. Discussions are ongoing regarding potential limitations on the export of certain waste metals essential for the clean energy transition.
Despite this, industry stakeholders argue that limiting scrap metal exports could be detrimental to the recycling sector. The Belgian Scrap Terminal, for instance, has indicated that its decisions to export are driven by market forces rather than a lack of interest in selling domestically. “If most of what BST recycles gets exported, it’s not because I don’t want to sell in Europe, it’s because it’s [how I get] the best price,” explained a senior operations manager at the yard.
This growing tension between heavy industry and recyclers underscores the challenges Brussels faces as it grapples with the realities of a declining industrial base and the complexities of the global market. While heavy industry calls for restrictions on exports to bolster domestic supply, recyclers emphasize the need to maintain their business models amidst fluctuating markets.
As Europe navigates these turbulent waters, the debate surrounding the export of recycled materials will likely intensify, with implications not only for the continent’s industrial future but also for its environmental goals.