Ferrous waste and scrap as one of Estonia's main export commodities

Estonia, as a dynamically developing Baltic country, plays an important role in international waste trade, including ferrous scrap. An analysis of the data from 2022-2023 allows us to understand the reasons for its exports and the main shipping destinations.

Exact data on annual ferrous scrap production in Estonia in 2022-2023 are not directly available from public statistics. However, taking into account the country's industrial structure and overall industrial production rates, it can be estimated that Estonia generates significant volumes of ferrous scrap, resulting from industrial activities, construction and consumption of durable goods.

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Transport of ferrous waste and scrap from Estonia - reasons

1. Estonia does not have sufficient processing capacity to fully utilise the ferrous scrap produced. The lack of large steel mills forces the country to export surplus raw material to countries with a developed metallurgical industry.
2. The export of ferrous scrap is an important source of income for Estonian metal waste collection and processing companies. Selling raw material on international markets allows higher prices than on the domestic market.
3. Recycling of metals, including ferrous scrap, contributes to energy savings and CO₂ emissions. According to available data, recycled steel reduces energy consumption by 72% compared to production from virgin raw materials.

Waste transport from Estonia - the main directions

Estonia's overall trade statistics indicate the following export destinations:

• In 2022, Finland was Estonia's largest export partner, accounting for 16.64% of total exports. Geographical proximity and a developed metallurgical industry make Finland a natural customer for Estonian ferrous scrap.
• Latvia accounted for 12.51% of Estonian exports in 2022. Like Finland, Latvia benefits from geographical proximity and existing trade links.
• With a share of 8.68% in Estonian exports in 2022, Sweden is another important customer with a developed industrial sector capable of processing ferrous scrap.

A year later, as indicated by data published by Statistikaamet, a government agency operating under the auspices of the Ministry of Finance, has been slightly reshuffled. Indeed, it follows that:

• The main export destination for ferrous waste and scrap was Germany (with over 75% export share of these materials). The second most important direction was Latvia (here "only" over 15% export share). It was immediately followed by the Netherlands (with 3% export share).
• The value of waste and scrap exported to EU countries is estimated at almost €70 million.
• The waste also ended up outside Europe in significant quantities, most of which went to Turkey. Their value was valued at more than €116 million.

How does international waste transport support waste management in Estonia?

International waste transport, including ferrous scrap, plays a key role in the efficient management of waste in Estonia. For a country with limited natural resources and relatively little processing capacity, the export of secondary raw materials is not only a source of revenue, but also part of a larger strategy related to sustainable development.

Promote recycling and reduce backlog waste

The export of ferrous scrap enables Estonia to efficiently manage waste that could accumulate in landfills or go unused. Thanks to developed transport networks, Estonia can transfer excess secondary raw materials to countries with advanced processing industries.

Cooperation with neighbouring countries such as Finland and Sweden enables the processing of scrap metal into high-quality steel, which not only contributes to the reduction of waste in Estonia, but also supports a closed-loop economy in the region.

2. sustainability and reducing carbon emissions

Transporting ferrous scrap abroad to countries with greater processing capacity is more environmentally friendly than building large, energy-intensive smelters within Estonia. International trade makes it possible to use existing infrastructure, thus reducing the carbon footprint of waste processing.

For example, the recycling of ferrous metals in smelters outside Estonia contributes to energy savings and CO₂ emissions reductions. Estonia, as a member of the EU, has committed to ambitious climate targets and international cooperation on ferrous scrap transport and recycling supports these commitments.

3. Optimisation of logistics and infrastructure

The international transport of waste allows for the development of efficient logistics and transport infrastructure. Seaports such as Tallinn play a key role in the export of secondary raw materials and the development of these facilities contributes to improving capacity and increasing Estonia's competitiveness in the global market.

By investing in ports and transport systems, the country not only supports the local economy, but also facilitates sustainable waste trade with neighbouring countries.

4. promote regional cooperation and technology exchange

Transporting ferrous scrap abroad not only supports local waste management, but also enables the development of regional trade partnerships. Countries to which Estonia exports often share recycling technologies and experience in the efficient processing of secondary raw materials.

Such cooperation is mutually beneficial. Estonia benefits economically and develops its competence in waste management, while trading partners benefit from high-quality raw materials.

5. Better use of resources and achieving the EU's circular economy targets

The export of ferrous scrap is in line with the European Union's goals of a closed-loop economy. As a member of the EU, Estonia has an obligation to reduce landfill waste and increase recycling rates. The international transport of waste, enabling it to be processed at sites with the appropriate infrastructure, supports these objectives.

In addition, the trade in ferrous scrap allows for a more efficient use of raw materials and a reduction in the exploitation of natural resources. This is one of the pillars of the EU's environmental policy.

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The international transport of waste is not only economically beneficial for Estonia, but is also an important part of its sustainable development strategy. By cooperating with its neighbours, Estonia can manage waste efficiently, reduce backlogs, promote recycling and reduce its carbon footprint. Combined with infrastructure development and regional cooperation, the international transport of ferrous scrap allows Estonia to achieve its environmental and economic goals while supporting a global closed loop economy.