Tackling Illegal Scrap: BMRA’s Push for UK Scrap Reform to Create a Fairer Market

The UK scrap metal sector plays a critical role in the circular economy, supplying millions of tonnes of recycled material to both domestic and international markets each year. But behind its environmental contribution, the sector faces growing compliance, safety, and market challenges - from unlicensed operators to policy uncertainty - that risk undermining competitiveness.

The British Metals Recycling Association (BMRA) is calling for targeted policy action to create a fairer market, strengthen safety standards, and position the UK as a leader in responsible scrap management.

Key Challenges for UK Metal Recycling

Illegal operators
Despite legislation such as the Scrap Metal Dealers Act 2013, unlicensed traders continue to operate, bypassing environmental rules, avoiding taxes, and handling materials unsafely - from poorly managed end-of-life vehicles to unprotected battery storage.

Export policy tensions
Some stakeholders favour tighter scrap export controls to retain more feedstock for domestic steelmaking, while others warn that sudden restrictions could destabilise established trade flows and harm exporters.

Safety risks
Fires linked to lithium-ion batteries in waste electricals are becoming more frequent. Without improved collection and handling systems, the risk to both workers and facilities will persist.

BMRA’s Policy Recommendations

1. Kerbside battery and WEEE collection
   Regular local authority collections to reduce contamination in scrap loads, improve recovery rates, and lower fire risks.

2. Safer waste handling
   Guidance, training, and investment in battery-safe storage and advanced sorting to prevent incidents and improve scrap quality.

3. Inclusion in energy support schemes
   Recognition of the sector as energy-intensive, enabling access to existing relief programmes to offset high energy costs.

4. Tougher enforcement on illegal operators
   Stronger application of the Scrap Metal Dealers Act and better coordination between the police, local authorities, and the Environment Agency to remove rogue traders.

The Export Paradox

The UK exports 70–80% of its 11.5 million tonnes of scrap each year, mainly to Turkey, India, and Southeast Asia. While export demand remains strong, the BMRA argues that retaining more material for domestic processing could support the transition to low-carbon steelmaking, create jobs, and improve supply security.

The UK exports up to 80% of its 11.5 million tonnes of scrap annually — a paradox for a nation aiming to decarbonise its steel sector." Source: British Metals Recycling Association (BMRA), An Agenda for Change - sector data on scrap tonnage and export percentages.

Potential Outcomes if Changes Are Implemented

• Stronger domestic processing capacity - higher scrap quality and supply for UK steelmakers.

• Improved worker safety - reduced fire risks and better handling of hazardous materials.

• Fairer competition - removal of illegal traders to enable compliant businesses to invest and grow.

• Enhanced international competitiveness - higher quality scrap commanding a premium in both home and export markets.

What’s Next in Scrap Policy?

Government reviews of waste and recycling regulation - including upcoming extended producer responsibility (EPR) schemes for batteries and electricals - could bring:

• Updates to scrap export licensing.

• Greater enforcement powers for the Environment Agency.

• Funding for advanced sorting infrastructure.

• Extended energy cost relief for high-use recyclers.

The extent to which these measures reflect the BMRA’s proposals remains uncertain, but with global demand for recycled metals set to increase, near-term policy choices will shape whether the UK maintains its exporter status or develops a more self-sufficient, value-added scrap economy.

The Bottom Line

The scrap metal sector is well-positioned to support the UK’s circular economy and decarbonisation goals. With targeted regulation, investment in processing, and consistent enforcement, the industry could turn today’s challenges into a competitive advantage - strengthening domestic supply chains while maintaining a strong position in global markets.