EU proposes 15% aluminium scrap export tax to tackle 1.27MT recycling deficit

EUROPE – The European Commission has proposed a 15 per cent levy on aluminium scrap exports, responding to record shipments of 1.27 million tonnes in 2025 as the bloc aims to secure recycled metal supply for its domestic industry and address a 2 million tonne annual scrap deficit.

The move, expected to be formally announced on 9 September, would mark the first time Brussels has imposed charges on goods leaving the EU. 

The proposal follows a shift in global trade flows after the Strait of Hormuz disruption and the US imposition of a 50 per cent tariff on finished aluminium imports, which exempted scrap, redirecting material away from Europe.

 These dynamics have contributed to a sharp rise in scrap prices from EUR 1,500 (US$1,620) per tonne in October to EUR 2,240 (US$2,419) per tonne.

European Aluminium Warns of Scrap Deficit as Overseas Competition Intensifies

The bloc’s recycling sector directly employs 250,000 people and supports an additional one million jobs, generating approximately EUR 40 billion (US$43.2 billion) in annual revenue. European Aluminium estimates that the region faces an annual scrap deficit of approximately 2 million tonnes, with about 15 per cent of the EU’s recycling furnace capacity idle due to insufficient feedstock.

Industry data shows that EU aluminium scrap exports reached a record 1.27 million tonnes in 2025, representing an increase of about 50 per cent compared with 2019, with most shipments destined for India and China. 

European producers have argued that overseas smelters, benefiting from stronger margins, are able to outbid European buyers, remelt the scrap into primary products and ship the aluminium back into the EU. 

Aluminium prices have risen more modestly from around EUR 2,700 (US$2,916) to EUR 3,150 (US$3,402) per tonne, putting pressure on European producer margins.

Recycled Metal Supply’s Role in European Defence and Green Transition

European aluminium producers have emphasized that maintaining domestic recycling capacity is increasingly important as governments seek secure supplies of metals for defence applications and clean energy technologies. 

European Trade Commissioner Maroš Šefčovič stated that the European waste management industry requires strong and stable domestic demand for recycled materials to flourish and contribute to the EU’s environmental objectives, competitiveness and economic security. 

Paul Voss, director-general of European Aluminium, welcomed the proposal, stating that European industry deserves the opportunity to compete in a game that isn’t rigged, and that the measure demonstrates the Commission’s growing determination to defend Europe’s interests. 

Alongside the levy, the September package is also expected to examine a proposed ban on exports of rare earth magnets to reduce dependence on China.

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