EU aluminium producers push for 30% scrap export levy

BRUSSELE (Reuters) -The European Union in the European Union urges to impose 30 % duties on exports of metal scrap to prevent it from leaving the mass and leaving local producers short.

The exports of aluminum scrap in the European Union amounted to 1.26 million metric tons in 2024, according to the European Industry Group of European aluminum, 50 % higher than five years higher, mostly heading to Asia.

The European Union industry says that the situation has since been misleading due to the tariff for the import of US president Donald Trump, which has been identified by 50 % for aluminum but only 15 % for scrap. Scrap imports in the United States have been strengthened and exported, prompting Asian buyers to focus more on the European Union supplies.

European director of aluminum Paul Foss said that European companies find it impossible to compete with buyers in Asia, which can pay higher prices due to support and low labor and environmental standards.

“It is completely understood that scrap dealers prefer to sell to the highest bidder, but the role of the general policy to correct these types of market failures in order to protect strategic interests in Europe,” he said.

European aluminum and Eurofer, who represents the steel sector, met with the committee to pay for the export tax.

The European Union’s executive official began to monitor exports in July and says he would evaluate whether the procedure is necessary by the end of the third quarter.

The scrap is not just a resource for local producers, but a vital part of carbon removal efforts in the sector because aluminum recycling uses 95 % less energy than mineral production than bomb bauxite.

European aluminum said that European companies have invested 700 million euros (821 million dollars) to raise the capacity of recycling to 12 million tons.

A number of countries other than the European Union already limits the exports of metal scrap. The GMK Consulting Center says 48 countries, including India and China, are restrictions on iron scrap.

The steel sector also says that it is necessary to maintain scrap in Europe although it has more urgent concerns, especially a new system to curb the final steel imports that the committee is scheduled to announce.

However, scrap sellers in Europe oppose export restrictions.

The EURIC Rotoor Group said that scrap exports were the result of a decrease in domestic demand and insufficient ability to deal with mixed scrap, such as cut vehicles.

($ 1 = 0.8527 euros)

(Participated in the reports of Philip Blanchesop; edited by Joe Pavier)