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The European Commission is preparing to restrict exports of aluminium scrap in an effort to stem the increasing outflow of what is deemed a critical secondary raw material from the bloc.
Trade Commissioner Maroš Šefčovič confirmed the move at a sector event on Tuesday November 18 in Brussels, saying the Commission has started preparatory work on a new measure aimed at tackling “scrap leakage.”
The plan is expected to be finalized and adopted in spring 2026.
“This is a strong and timely statement of intent from the Commission,” director general of Brussels-based industry body European Aluminium, Paul Voss, said.
“Europe’s future will to a large extent depend on its ability to secure access to the raw materials that our economy and our society require. It is therefore hugely encouraging to see the EU acting so decisively to save our scrap,” Voss added.
EU aluminium scrap exports reached a record 1.26 million tonnes in 2024, roughly 50% higher than five years earlier, according to European Aluminium. Much of this material is flowing to Asia, but market distortions created by US tariffs have also played a key role.
About 40% — around 5 million tonnes per year — of the EU’s consumption of aluminium metal comes from recycling, according to European Aluminium.
The US currently imposes a 50% tariff on primary aluminium while exempting scrap, making scrap more attractive to American buyers. This has increased US demand for imported scrap while reducing its own exports, pushing Asian buyers to focus even more heavily on European supply.
European aluminium producers say the surge in exports is now leaving domestic recycling facilities short of feedstock, with an estimated 15% of EU recycling furnace capacity currently offline. The industry has invested heavily in new recycling infrastructure but still lacks about 2 million tonnes of scrap per year to run plants at full capacity.
Many aluminium producers are calling for a 30% export duty on aluminium scrap to try and keep more material within Europe.
Šefčovič said that any final policy will be “balanced” and take into account the interests of producers, recyclers, downstream manufacturers and exporters.
He highlighted the environmental viewpoint: recycled aluminium needs 95% less energy than producing primary metal, making steady access to scrap essential for the EU’s decarbonization goals, as well as for low-carbon industries such as automotive and renewable energy equipment.
But scrap suppliers strongly oppose export restrictions, arguing that high export volumes reflect weak domestic demand and insufficient EU capacity for processing mixed-grade scrap, particularly from end-of-life vehicles. Suppliers said that limits on exports may undermine the scrap industry, threaten jobs and disrupt Europe’s circular-economy objectives.
Scrap dealers, too, are resisting any curbs because overseas buyers typically pay higher prices than domestic customers.
The European Recycling Industries’ Confederation (EuRIC) argues that the solution is not tariffs, but stronger demand for recycled aluminium inside Europe.
Market participants estimate that a 25-30% export tariff would add €50-150 per tonne to the cost of scrap leaving the EU, assuming that purchasers pass that cost on to their bids. For domestic scrap, market participants say €20-40 per tonne may be added to prices, particularly for high-grade material, while marginal grades may see discounts or be stockpiled.
But those effects would depend, market sources have said, on freight rates, EU smelters’ willingness to pay more and stable energy costs.
The Commission has already put a metal scrap surveillance system in place, rolled out in mid-2025, to track export flows more closely. The data is expected to feed into a formal assessment next year, after which policymakers will decide between options such as export duties, export licensing, or mandatory recycled-content targets.
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