As governments around the world increasingly turn towards protectionist policies and trade restrictions, global recycling leaders have reiterated that free and fair trade remains fundamental to the industry's economic viability and environmental contribution.

The message was reiterated by market participants during discussions at the International Trade Council (ITC) meeting held as part of the ongoing Bureau of International Recycling (BIR) World Recycling Convention & Exhibition in Gothenburg.

Industry representatives warned that restrictions on the movement of secondary raw materials could undermine investment, distort markets, and weaken the recycling sector's ability to support circular economy objectives.

Robin Wiener, President of the Recycled Materials Association (ReMA), noted that the United States generates more recycled material than it can consume domestically across several commodities, making access to international markets essential.

“The USA produces a surplus of recycled materials across all the commodities, and so having global market access is ‘critical’,” Wiener said.

Echoing that view, Emmanuel Katrakis, Chairman of BIR's International Trade Council and Director of Public and Regulatory Affairs at Galloo, highlighted the structural imbalances that exist between supply and demand across different regions.

“There will always be - or very often be - a mismatch between what we are going to recycle and what our neighbour needs, and thus, to bridge that gap, we need to have access to local and global markets,” he said.

Case against restrictions

To strengthen the industry's case against export restrictions, ReMA recently conducted studies examining recycled copper and aluminium availability in the United States.

According to Wiener, the research found that domestic end-of-life recycled copper supply significantly exceeds current consumption levels.

“In 2025, it was a three and a half times ratio,” she explained. “And the other good news is that the tonnage of US end-of-life copper recovered is expected to continue to increase into the future and will certainly exceed supply for at least the next 15 years.”

A similar assessment of recycled aluminium found available supply to be roughly four and a half times greater than existing domestic demand.

Despite ongoing investments in manufacturing and industrial capacity within the United States, Wiener said available recycled material supply is expected to remain well above future demand levels.

“So the conclusion,” she declared, “is that there is no justification for those trade restrictions.”

She also pointed to recent policy developments, noting that proposed export controls on recycled copper were defeated in July last year, while current indications suggest export restrictions on aluminium are not a priority for the US administration.

Profitability is critical for recycling investments

Speakers stressed that a financially healthy recycling industry is necessary to sustain investment in collection, processing, and upgrading infrastructure.

Wiener argued that customers depend on a strong recycling sector capable of continually improving its operations and maintaining its role within industrial supply chains.

That concern was echoed by Mattias Rapaport, Managing Director of Stena Metal International.

“We have to have an economically viable environment. We are investing heavily in our own industry. If we are restricted from a level playing field of a global market where material can find its best value, it will be harmful for us and actually harmful to our customers,” he said.

Rapaport added that recyclers naturally prioritise local markets but require access to international outlets when domestic demand is insufficient.

“We want to supply our local furnaces,” he insisted, “but we also have to have access to other markets when the demand is not there. The material that finds its place in Europe will stay in Europe because that is the most logical business there is. Exporting is a greater effort.”

Copper recycling seen as major economic opportunity

Providing a broader market perspective, Fernando Acosta, Director of Economics and Environment at the International Copper Study Group (ICSG), outlined the growing role of recycling within global copper supply.

Acosta noted that recycling offers an efficient means of returning valuable material to the economy while consuming less energy and generating fewer emissions than primary production.

According to ICSG data, recycled material accounted for approximately one-third of global copper supply in 2024, with the copper recycling rate standing at 33%.

“Higher recycling rates are not necessarily associated with higher income levels because what is relevant is the presence or the existence of a developed market,” Acosta pointed out.

Looking ahead, he expects countries to continue investing in smelting and refining infrastructure to process more complex scrap streams domestically and strengthen supply chain resilience.

Assuming global net-zero targets are achieved by mid-century and copper demand reaches around 50 million tonnes, Acosta believes recycling could become an increasingly significant economic driver.

“So it seems that recycling, in the case of copper, is not only relevant from an environmental perspective but it’s also an interesting business opportunity,” he said.

He estimated that recycled copper could represent a market worth between US$1.7 trillion and US$2 trillion during this period.

Growing concern over market distortions

While recognising governments' efforts to secure strategic materials and strengthen domestic industries, speakers cautioned that increasing trade restrictions may create unintended consequences.

Acosta noted that OECD analysis shows a continuing rise in trade barriers globally and warned that policy uncertainty can discourage long-term investment.

“The problem is that these policies can have unintended or unexpected consequences,” he said.

In particular, he argued that such measures can work against “the need to have clear and predictable policies in the long term to attract investment”.

As governments seek to balance industrial policy, resource security and climate objectives, industry leaders at the BIR convention maintained that open markets remain central to ensuring recycled materials can move efficiently to where they are needed most, supporting both economic growth and circular economy ambitions.