The Rising Tide of Europe’s Economy Faces Challenges in Global Supply Chains: The Case of Iron and Steel Scrap

In recent years, Europe’s economy has shown signs of growth, as indicated by the recent strong Purchasing Managers’ Indices. The Eurozone saw a significant increase in April, with Germany’s service sector performing particularly well. This positive trend suggests that economic output is on the rise.

However, global supply chains are facing challenges due to various factors, including geopolitical tensions and natural disasters. One such challenge is the shortage of iron and steel scrap in Israel, which has led to discussions about introducing restrictions on its export. A draft law has been proposed to require export licenses for scrap and implement quantitative quotas to address the scarcity in the country.

Export bans on scrap are becoming more common globally, with several countries implementing restrictions to address shortages. The European Union is also considering an export ban as part of its Waste Shipment Regulation, in response to calls from domestic steel producers.

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