A dispute has erupted between UK metals recyclers and domestic steelmakers over proposed restrictions on scrap steel exports, with recyclers arguing for continued international trade while steelmakers want more material retained domestically. 

The British Metals Recycling Association (BMRA) warns that limiting exports to developing countries could eliminate £5 billion in economic activity and cost up to 20,000 jobs. UK steelmakers, however, want to secure scrap supplies as they transition from carbon-intensive blast furnaces to cleaner electric arc furnaces (EAFs) that rely on recycled metal rather than mined iron ore. 

The UK's two major steel plants at Port Talbot and Scunthorpe are both planning to upgrade to these environmentally friendly EAF systems. 

Currently, about 80% of Britain's 5.6 million tons of steel scrap from old cars, buildings, and bridges is exported and processed in electric arc furnaces overseas.