The ESA has today (1st December 2025) expressed its support for the findings of a new report which puts forward recommendations to Government to help develop a thriving, circular and low-carbon domestic economy for recycled steel.
ESA’s Executive Director, Jacob Hayler, was invited by UK Steel to chair its Circular Steel Sub-Committee, which brings together steel producers, recyclers, and experts to develop practical policy proposals supporting a sustainable, circular steel economy.
The Circular Steel Sub-Committee has today published a new report entitled Circular Steel: Strengthening the UK’s Industrial Supply Chain, which highlights opportunities to drive processing standards in steel scrap and ensure a sustainable and competitive future for UK metal recovery and recycling and electric arc furnace steel production.
Currently, the UK exports over 80% of the 10 million tonnes of steel scrap it produces annually, with much of that returning to the UK as finished goods, undercutting domestic manufacturers. The report cautions that, without policy and market reform, the UK risks outsourcing jobs and emissions while missing the opportunity to build a thriving, circular, low-carbon steel value chain .
The report outlines several key recommendations, including:
- Investing in domestic steel scrap processing infrastructure to meet Electric Arc Furnace (EAF) standards.
- Aligning fiscal, environmental and energy policies to create a thriving market.
- Establishing national definitions and quality standards for steel scrap.
- Modernising regulatory oversight and licensing.
- Supporting recyclers through energy cost reductions
The report is available to view and download as a PDF here: https://ow.ly/MCrV50XrFCF
Jacob Hayler said: “The UK’s steel scrap resource is one of our greatest industrial assets, but the policy framework that drives the market has not kept pace with the shift to low-CO2 production. It costs less to export steel scrap for processing and manufacture abroad and to then re-import those steel products, than it does to process and manufacture it domestically. That must change if we are to retain jobs, encourage investment, and support resilience in the UK’s manufacturing base.
The UK has the scrap, the skills, and the ambition to be a global leader in circular steel. Benefits for the steel industry, the recycling industry, for jobs, growth and the environment are within our grasp. What we need now is coordinated policy leadership to align with national climate, industrial and competitiveness objectives.”
