Posted on 11 Oct 2022
Skyrocketing electricity and gas prices in Europe pose major challenges for steel recycling and jeopardise the ambitious goals of climate neutrality and circular economy in Germany and at EU level, German steel recyclers federation BDSV tells Kallanish.
“Like many other companies, BDSV member companies are increasingly running the risk of no longer being able to produce economically,” the association said at its annual conference in Darmstadt last week. “If politicians do not quickly defuse the situation, this could mean permanent job losses. In addition, rising energy costs and the unsecured availability of energy are threatening companies in the steel producing and steel processing industry, which has a direct negative impact on the amount of scrap material.”
According to BDSV, the reactivation of the Economic Stabilisation Fund (WSF) presented by the German government in September to alleviate the impact of drastic energy price increases is an important first step in the right direction. “It is now important that the announced energy price brake works quickly and is sufficiently effective for medium-sized companies as well,” it adds.
At EU level, the merit order principle must be changed as quickly as possible, so that electricity prices are no longer linked to gas prices. In addition, BDSV and its partner associations have called on the European Commission to include recycling in the list of economic sectors eligible for EU aid.
BDSV has repeatedly pointed out that free world trade in steel scrap is of vital importance to German and European recycling companies. Currently, only around 80% of the steel scrap produced in Europe is taken by steelworks and foundries. Almost 20 million tonnes of the climate-friendly raw material from recycling are exported from the EU.
“A restriction on trade and the associated foreclosure of end markets for recycling raw materials will have a negative impact on waste collection, recycling and investments to expand recycling capacity,” BDSV noted.
It is already possible today to increase the scrap ratio in the blast furnace route from the current 20% to 30%, as is being done successfully in the US and China, it added.
The steel recycling industry expects additional CO2 savings due to the expansion of the electric furnace route for steel production. In addition, BDSV has campaigned for a "scrap bonus" to be integrated into the European Emissions Trading System.
Source:Kallanish
