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The EU has announced plans to restrict exports of aluminium scrap to protect its industry, risking a fresh trade dispute with the US.
European trade commissioner Maroš Šefčovič said on Tuesday that the growing leakage of scrap from Europe risks its sustainability goals. Aluminium producers say their recycling plants are idle as valuable scrap is sold to the US and Asia for higher prices.
US importers are likely to press their government to resist any change. Washington has imposed 50 per cent tariffs on imports of steel and aluminium, but not on scrap, as so many US smelters import that and produce fresh metal.
US trade representative Jamieson Greer and commerce secretary Howard Lutnick will meet Šefčovič in Brussels on November 23 and 24 to discuss progress on the two sides’ shaky trade deal. The agreement, struck in July, imposed levies of 15 per cent on most European exports.
Šefčovič said that recycling aluminium from scrap emitted far less carbon than smelting new metal. The material is vital for the green transition as it reduces the weight and fuel consumption of vehicles and is used in many renewable energy technologies.
European Aluminium, which represents the industry, said an estimated 15 per cent of EU recycling furnace capacity was offline because of insufficient domestic scrap availability.
The EU industry has invested heavily in recycling but has about 2mn fewer tonnes of scrap annually than it can process.
“This is a strong and timely statement of intent from the commission,” said Paul Voss, director-general at European Aluminium. “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.”
The sector has an annual turnover of €40bn, directly employs 250,000 people and supports a further 1mn jobs in Europe.
The final measures will come early next year and have yet to be decided. Options include a levy on exports or targets for recycled content, according to people familiar with the matter.
Europe’s scrap metal dealers, who can get higher prices overseas, have long lobbied against any restrictions.
