15 November 2024 – EU steel producers continue to call for a scrap export ban that goes beyond the new EU Waste Shipment Regulation. If they get their way, the entrepreneurial freedom and competitiveness of the EU recycling industry, which is dominated by small and medium-sized enterprises, will be at stake. And the International Energy Agency expects a surplus in oil production by 2025.
IEA expects a surplus in oil production in 2025
The International Energy Agency (IEA) expects an oil surplus of over 1.5 million barrels per day in 2025. This is due to weaker demand from China as a result of the expansion of electromobility and the increased use of natural gas. At the same time, oil production in North and South America is rising, which could put further downward pressure on prices.
Lower oil prices would also have a positive impact on European electricity prices
Lower oil prices would also have a positive impact on European electricity prices, as these are heavily influenced by the variable costs of fossil energy producers due to the outdated merit order principle for determining electricity prices. Despite progress in renewable energies, CO2-intensive energy sources continue to dominate pricing in the EU.
The potential drop in oil prices offers relief to consumers and companies in the EU. In the long term, the reduction of fossil dependencies remains crucial in order to ensure stable and sustainable energy prices.
Scrap export ban: EU steel manufacturers call for further restrictions
With the revised waste shipment regulation, the EU has already introduced extensive restrictions on scrap exports. For example, exports of ferrous and non-ferrous scrap to non-OECD countries have been banned.
Steel manufacturers aggressively calling for further export restrictions on scrap
However, this is still not enough for European steel manufacturers, which is why they are aggressively calling for further export restrictions on scrap. There are also renewed calls for scrap to be included in the EU’s Critical Raw Materials Act and thus defined as a scarce raw material. The steel lobbyists were unable to get their way with this demand in a first attempt.
If the political decision-makers in the EU were to give in to these demands, this would represent an unfair, inappropriate and dangerous interference in entrepreneurial freedom and the competitiveness of the domestic recycling industry, which is dominated by small and medium-sized enterprises.
Carbon Border Tax CBAM with a huge scrap loophole
At the same time, the Carbon Border Tax CBAM leaves a huge loophole open with regard to scrap imports into the EU. This loophole allows not only end-of-life scrap but also so-called new or home scrap (production waste) to be imported into the EU without CO2 taxation – regardless of its origin or how intensive the CO2 emissions were during production.
A gap that is already being massively exploited by EU steel producers by importing scrap into the EU, which according to market sources is not insignificant.
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