ASI calls for export ban on unprocessed ferrous scrap

ASI calls for export ban on unprocessed ferrous scrap

The ASI has called on the Federal Government to ban the export of unprocessed ferrous scrap metal, saying it is best used locally. 

In a presentation to the Federal Government last month (November 2022), ASI sustainability national manager Michael Dawson said the domestic steel industry has prioritised the increased use of scrap as one of the enablers in its decarbonisation pathways. 

Dawson said higher local scrap use decreased the greenhouse gas emissions produced in the iron and steelmaking process and reduced reliance on iron ore and coking coal. The addition of the ban using existing Commonwealth legislation would prevent the dumping of the hazard-containing material offshore and protect the sovereign capability of Australia’s steel manufacturing. Dawson said there is currently a shortage of domestic processed ferrous scrap, with local steel producers forced to source more than 500,000 tonnes of ferrous scrap from a combination of interstate and overseas sources. 

“This is occurring at the same time as 1.07 million tonnes of unprocessed ferrous scrap is being exported from Australia annually,” he said. “As a result, we are confronted by a bizarre situation whereby locally we’re underutilising our national scrap processing capacity as our steel mills are importing processed ferrous scrap, to meet increasing demand for steel – which is essentially adding to the carbon footprint of the supply chain and putting at risk our capacity to decrease our GHG emissions in the near term through insuring supply of adequate domestic scrap.”  

Dawson said making a change to existing Commonwealth legislation banning export of the scrap would reap significant benefits for local steel manufacturing capacity and its decarbonisation efforts. “It would free up an extra 800,000 tonnes of processed scrap to the domestic market, decrease our sector’s GHG emissions by approximately 1.5 m/ts CO2e; and prevent harm to offshore environment through banning the dumping of Australia’s unprocessed scrap waste. It’s a win, win, win,” Dawson said.