EU Considers Aluminium Scrap Export Restrictions to Support Local Industry

Post by : Bianca Suleiman

The European Union is gearing up to implement stricter controls on aluminium scrap exports, a vital resource for the metal industry within the region, in response to a dramatic increase in international demand. This initiative aims to guarantee sufficient raw material for domestic manufacturers, facilitating their decarbonisation efforts and preserving competitive edges.

Aluminium scrap exports from the EU reached a record-breaking 1.26 million metric tons in 2024, reflecting a 50% increase over the last five years. A significant portion of these shipments has been directed towards Asian markets as foreign buyers grow increasingly dependent on EU supplies.

Market analysts attribute this trend to the effects of U.S. tariff policies, where primary aluminium imports are subject to a hefty 50% tax, while scrap metal incurs only a 15% levy. This has driven up U.S. scrap imports while simultaneously diverting Asian interest towards European sources.

Acknowledging the potential pressures on local manufacturers, the European Commission started tracking aluminium scrap movements in July 2025. “We are initiating preparatory work for new measures to combat aluminium scrap leakage,” stated EU Trade Commissioner Maros Sefcovic. The new policy, anticipated to be unveiled in spring 2026, aims to reconcile the interests of manufacturers, recyclers, and various downstream sectors.

Aluminium scrap serves not only as a marketable asset but also plays a crucial role in decarbonisation. The energy required for recycling aluminium is 95% less than that needed for its extraction from bauxite, underscoring the importance of scrap availability for sustainable metal production.

Nonetheless, some stakeholders in the recycling sector contend that the EU's exporting practices reflect inadequate domestic processing capabilities and insufficient local demand for mixed scrap types, such as those generated from shredding vehicles. They argue that simply limiting exports will not completely alleviate supply issues without further investments in processing capacities.

As Europe deliberates its strategy, the interplay between preserving local metal reserves and facilitating global trade will be a focal point for both domestic manufacturers and international markets.