By José Ramírez Sánchez, Technical and Innovation Director of Ecoembes. For decades, commodity markets have oscillated in relatively predictable cycles. However, the reality today is very different; Geopolitical tensions, the fragmentation of international trade, energy volatility and economic uncertainty have introduced a new scenario in which prices can change in a matter of weeks and even days, breaking the balance between supply and demand almost continuously.
This volatility is something that affects strategic sectors for the European economy, which also includes the secondary raw materials sector, those obtained from the treatment and recycling of waste, and which are part of a global market subject to the same dynamics as any other raw material. Recycling is often talked about in environmental terms, but there is an economic dimension that is equally relevant.
European industry operates in an environment especially demanding marked by high energy costsweaker demand in some industrial sectors and the arrival of imported materials at lower prices. This situation directly affects this market: when industrial demand decreases, the value of secondary raw materials also decreases and, with it, the ability to generate economic activity around their recovery and transformation. And this generates a competitiveness and subsistence challenge for all companies that are part of this sector, due to the special impact upstream (on demand).
Europe’s commitment to the circular economy responds precisely to this vision. The new community regulations seek to make products more recyclable, incorporate more recycled material and remain in use longer. The final objective is not only to improve waste management, but also to make better use of the resources already available in the economy. Circularity does not end when waste is correctly separated and recycled. It is only completed when that material is re-incorporated into the production processes and finds sufficient demand to guarantee its subsequent use.
This is why The European recycling sector has been demanding measures for some time that contribute to stimulating the demand for secondary raw materials, especially those produced in Europe. In an increasingly complex global environment, it is essential that imported materials competing in the market meet equivalent requirements in terms of quality, control and guarantees that ensure fair competition. This is why the sector requests demand generation measures (prioritizing the “Made in Europe”), a reinforcement and improvement of traceability and equality in the face of market requirements and conditions between non-EU and Community materials.
The European Union’s ability to harness these resources is more important today than ever. In a context marked by the need to strengthen industrial autonomy and reduce external dependencies, recycled raw materials represent an opportunity to generate economic value, strengthen supply chains and move towards a more resilient model. That’s why, The challenge facing Europe is not only to recycle more, but also to create the necessary conditions so that recycled materials can compete and add value within the economy in order to protect the value of the material and the European recycling chain.
In a world marked by uncertainty, recycled raw materials are not only a tool to reduce waste. They are also a strategic resource to strengthen the European economyreduce vulnerabilities and generate value within our borders. Protecting your competitiveness and guaranteeing your demand is not a sectoral issue. It is an industrial policy decision that will help define what role Europe wants to play in the value chains of the future.