Exports of scrap steel should be slashed in a bid to boost the UK steel industry and tackle climate change, a report has urged.
Cutting the amount of waste metal sent abroad could bolster Britain’s sector by allowing it to process and use more, according to a study by the Tory-linked think tank Bright Blue.
Its 105-page report, funded by Liberty Steel, calls for a cap “on the total weight of scrap metal exports, with the intention of at least halving scrap exports by 2030”.
“High levels of scrap exports are unsustainable in the context of decarbonising the UK’s steel industry,” it says.
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“Increasing scrap retention and processing within the UK will enable faster emissions’ reductions, continued investment in secondary steelmaking within the UK, the supporting of jobs in domestic supply chains, and the reduction of the UK’s dependence on imported steels.”
The authors call for “a cap on total UK scrap exports by weight … rather than an export ban - as some have proposed - which might lead to unintended consequences such as scrap metal losing its value”.
The recommendation is one of seven aimed at boosting the British steel industry.
Think tank chief executive Ryan Shorthouse said: “Steelmakers are a critical part of the UK economy, but they have faced significant challenges in recent years, especially higher energy prices and global trade distortions.
“With the right policies and investment, however, the UK can have a world-leading clean steel industry.”
The report, A carbonless crucible Forging a UK steel industry, “examines how the UK's steel industry can be revived and a thriving market for ‘clean steel’ developed”.
It also calls for “total VAT relief on the purchase of low-residual scrap to offset the increased costs of scrap processing”.
“Large quantities of poor condition scrap are produced in the UK in excess of what UK steelmakers require for their own production,” it warns.
“Scrap that is in poor condition can, however, be upgraded to low-residual scrap, which has greater value to UK steelmakers, if processed to remove contaminants.”
The steel sector is blamed for 14% of the UK’s industrial emissions and 2.7% of all Britain’s greenhouse gases.
At the same time, producers are urging customers and the Government to buy more UK steel to boost the British economy and cut Britain's reliance on foreign imports.
The Commons Climate Change Committee has recommended emissions from the production of iron and steel in the UK fall to near zero by the mid 2030s.
However, there is so far no specific commitment from ministers to delivering “clean steel” within a defined period.
UK Steel director-general Gareth Stace previously said the “decarbonisation of the steel sector represents a huge opportunity for both industry and Government”.
Community steelworkers’ union operations director Alasdair McDiarmid said: “We welcome this research which rightly concludes that Britain needs a strong and sustainable steel industry, and that with the right framework of support the sector has a bright future.
“Steel is no sunset industry and will be vital for delivering net zero, to our national security, to building a prosperous and resilient 21st century economy, and to Britain’s future as an independent trading nation.”
He added: “Our steel industry has to decarbonise and government must do far more to support us.
“It can’t happen overnight, but with government support there can be a just transition which protects jobs and the future of all our steel businesses.”
The Mirror has been campaigning to Save Our Steel since 2015 when the industry was hit with thousands of job losses and plant closures.
