EU aluminium producers push for 30% scrap export levy

BRUSSELS (Reuters) -The European Union’s aluminium sector is urging the European Fee to impose duties of round 30% on exports of scrap steel to cease it flooding out of the bloc and leaving home producers brief.

EU aluminium scrap exports hit a report 1.26 million metric tons in 2024, in line with trade group European Aluminium, round 50% greater than 5 years in the past, with most heading to Asia.

The EU trade says the scenario has since worsened attributable to U.S. President Donald Trump‘s import tariffs, which had been set at 50% for aluminium however solely 15% for scrap. That is boosted scrap imports into the US and lowered exports, pushing Asian patrons to focus extra on EU provide.

European Aluminium’s director basic Paul Voss mentioned European firms had been discovering it unattainable to compete with patrons in Asia that may pay greater costs attributable to subsidies and decrease labour and environmental requirements.

“It is completely comprehensible that scrap merchants choose to promote to the very best bidder, however it’s the function of public coverage to right these sorts of market failures with the intention to defend Europe’s strategic pursuits,” he mentioned.

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

The EU government started monitoring exports in July and says it can assess whether or not motion is important by the top of the third quarter.

Scrap isn’t just a useful resource for home producers, however an important a part of the sector’s decarbonisation efforts since recycling aluminium makes use of 95% much less power than producing steel from mined bauxite.

European firms have invested 700 million euros ($821 million) to lift recycling furnace capability to 12 million tons, European Aluminium mentioned.

Quite a lot of non-EU nations already restrict steel scrap exports. Consultancy GMK Middle says 48 nations, together with India and China, impose restrictions on ferrous scrap.

The metal sector additionally says it’s important to maintain scrap in Europe although it has extra instant issues, notably a brand new system to curb completed metal imports that the Fee is ready to announce.

Europe’s scrap sellers, nevertheless, oppose export restrictions.

Recycling trade group EuRIC mentioned scrap exports had been the results of low home demand and inadequate capability to deal with blended scrap comparable to from shredded automobiles.

($1 = 0.8527 euros)

(Reporting by Philip Blenkinsop; Modifying by Joe Bavier)