EU aluminium producers push for 30% scrap export levy

BRUSSELS (Reuters) -The European Union's aluminium sector is urging the European Commission to impose duties of around 30% on exports of scrap metal to stop it flooding out of the bloc and leaving domestic producers short.

EU aluminium scrap exports hit a record 1.26 million metric tons in 2024, according to industry group European Aluminium, around 50% higher than five years ago, with most heading to Asia.

The EU industry says the situation has since worsened due to U.S. President Donald Trump's import tariffs, which were set at 50% for aluminium but only 15% for scrap. That's boosted scrap imports into the United States and reduced exports, pushing Asian buyers to focus more on EU supply.

European Aluminium's director general Paul Voss said European companies were finding it impossible to compete with buyers in Asia that can pay higher prices due to subsidies and lower labour and environmental standards.

"It's perfectly understandable that scrap traders prefer to sell to the highest bidder, but it's the role of public policy to correct these kinds of market failures in order to protect Europe's strategic interests," he said.

European Aluminium and Eurofer, which represents the steel sector, have met with the Commission to push for the export levy.

The EU executive began monitoring exports in July and says it will assess whether action is necessary by the end of the third quarter.

Scrap is not just a resource for domestic producers, but a vital part of the sector's decarbonisation efforts since recycling aluminium uses 95% less energy than producing metal from mined bauxite.

European companies have invested 700 million euros ($821 million) to raise recycling furnace capacity to 12 million tons, European Aluminium said.

A number of non-EU countries already limit metal scrap exports. Consultancy GMK Center says 48 countries, including India and China, impose restrictions on ferrous scrap.

The steel sector also says it is essential to keep scrap in Europe though it has more immediate concerns, notably a new system to curb finished steel imports that the Commission is set to announce.

Europe's scrap sellers, however, oppose export restrictions.

Recycling industry group EuRIC said scrap exports were the result of low domestic demand and insufficient capacity to handle mixed scrap such as from shredded vehicles.

($1 = 0.8527 euros)

(Reporting by Philip Blenkinsop; Editing by Joe Bavier)