European Aluminium irked by delay, replacement of scrap export duty

The European Aluminum Association has expressed disappointment over the continued delay and substitution of scrap export duty measures in the EU. The Commission has shifted its focus from export duties to banning non-OECD market sales, expected no earlier than 2027. European Aluminum maintains that a comprehensive trade measure with a broader scope is urgently needed.

While praising the Commission's efforts to tackle the issue, the association stresses the importance of an effective policy instrument. The delay has frustrated industry representatives, including European Aluminum's Director General Paul Voss, who emphasized the urgency of addressing Europe's aluminum scrap leakage. The EU had initially planned to introduce restrictions on aluminum scrap exports in Q2 2026, but the measure was postponed to September.

The Commission now plans to implement a ban on exports to non-OECD countries, with some exceptions for EU candidate states. Industry-driven European Aluminum had initially supported the export duty plan, but concerns about its effectiveness led to the withdrawal of the measure in favor of an alternative approach. Executive Vice-President Stéphane Séjourné explained that the exemption of free trade agreement partners and the high effective trade value of EU exports to non-OECD countries made the duty insufficient.

The decision has been well-received by industry stakeholders, with Voss urging the Commission to implement alternative measures promptly. However, domestic recyclers are concerned about the clarity and predictability required for their business models and international trade flows, particularly the upcoming 2027 implementation of waste shipment regulation provisions.

They question whether the new requirements, such as independent audits of foreign receiving facilities, can be effectively implemented. While Executive Vice-President Séjourné supports the shift away from export duties, metal recycling association president Murat Bayram stresses that restricting exports does not create industrial demand.

Bayram argues that Europe's automotive and machinery industries are under pressure, reducing production and leading to site closures, and that Europe still requires recycled metal for its transformation to electric vehicle production. Scrap grades and qualities differ from what European manufacturers need, given the changing material requirements in the automotive industry.

The EU exports only about 22% of its aluminum scrap to non-OECD countries, with major destinations being India, Thailand, and Pakistan. Non-OECD exports account for a significant volume of EU aluminum scrap exports, and reducing these exports could have substantial consequences. If the ban is enforced, the EU's aluminum scrap exports could be reduced by up to 950,000 mt, or 75%.