China is intensifying efforts to boost domestic stainless steel demand by expanding its old-for-new policies targeting large appliances and consumer goods, such as white goods. Meanwhile, EU aluminum and steel associations are urging the European Commission to tighten export restrictions on ferrous and non-ferrous scrap, using selective data to advocate their case.

China Expands Support for Stainless Steel Demand

Recently, the Chinese government announced extended measures for the replacement of large appliances and trade-in programs for consumer goods, set to continue through 2025. These initiatives aim to further drive demand for new appliances and vehicles, directly benefiting industries that rely heavily on stainless steel, such as automotive, household appliances, construction, decoration, and digital products.

Analysts project that the expanded policy, which contributed to a 21% increase in domestic stainless steel demand in 2024, will sustain growth of approximately 9.9% in 2025.

EU Steel Industry Pushes for Scrap Export Restrictions

In Europe, domestic steel and aluminum producers have renewed their calls for immediate export restrictions on ferrous and non-ferrous scrap. In a letter to the European Commission, they demanded the use of all available measures to implement these restrictions.

Criticism of Scrap Export Restrictions

A ban on scrap exports would significantly impact the economic freedom of EU businesses, particularly small and medium-sized enterprises (SMEs) in the recycling sector. Critics argue that such restrictions could pave the way for an oligopoly dominated by large corporations, undermining competition and stifling diversity in the industry—a trend exacerbated by years of leniency from EU regulators.

This interference in economic freedoms reflects outdated practices, potentially triggering political and economic consequences across the EU. The public’s shifting political affiliations and voting patterns in major European nations already signal dissatisfaction with restrictive policies.

Disputed Data from EU Steel Lobby

The lobby's claims are also under scrutiny for their selective representation of data. While highlighting the rise in aluminum scrap exports, the letter omits significant facts, such as the 24% decline in steel and iron scrap exports between 2021 and 2024. This omission paints an exaggerated picture of a looming crisis for steel scrap, further fueling arguments for subsidies and market-distorting measures that primarily benefit large corporations at the expense of SMEs.