The European Commission on Tuesday said that it was preparing new measures to limit exports of aluminium scrap metal, a move aimed at combating trade flows that are worsening a growing crisis in the bloc’s struggling metal industry.
European Commissioner for Trade Maroš Šefčovič said Brussels would work at “huge intensity” over the coming months to reduce so-called aluminium “scrap leakage,” which is compounding shortages of raw materials for EU recyclers and harming the sector’s efforts to cut carbon emissions. Recycling scrap is significantly less polluting than primary aluminium production.
Scrap leakage to Asian countries, including China and India, has been further aggravated by US President Donald Trump’s 50% tariff on value-added aluminium exports, which has boosted American demand for European scrap that is subject to a lower US levy.
“I’m pleased to announce that we are launching the preparatory work on a new measure to address the issue of aluminium scrap leakage,” Šefčovič told a conference organised by the industry group European Aluminium.
“We do not want to completely block aluminium scrap exports,” Šefčovič said, adding that the EU executive’s “balanced” measures would seek to “allow industries using aluminium to access adequate quantities of this strategically important material at competitive prices, in order to pursue their path towards decarbonisation.”
Šefčovič added that the Commission, which oversees EU trade policy, would seek to adopt the new measures by next spring.
The announcement was welcomed by Europe’s aluminium sector, which has struggled for years to compete globally amid high energy prices and a growing flood of cheap Chinese exports. Europe’s aluminium sector employs an estimated 1 million people.
“[I’m] very pleased indeed,” said Paul Warton, chair of European Aluminium. “But the devil will be in the detail.”
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