Industry association European Aluminium has again called for limits on exports of aluminium scrap outside the EU to support the bloc's recycling industry and its goal of achieving a sustainable, circular economy.
The association has specifically called for export fees on aluminium scrap, saying they "would help channel more scrap for sorting and remelting in European recycling facilities, stimulate new investments, and close the loop within our borders under strict environmental and social standards".
It is the third time this year that European Aluminium has made an explicit call for export restrictions on aluminium scrap, joining a growing chorus of voices among EU scrap consumers for such measures, which has emerged as profit margins of secondary aluminium alloy producers have been squeezed by high scrap raw material prices, as well as high power and labour costs in Europe relative to competing regions.
High scrap prices have followed the tightening of supply on lower generation rates because of slowing activity in the automotive, construction and manufacturing markets, as well as high offer prices from export markets in India and elsewhere in Asia.
"Approximately, over the last year, 15pc of Europe's current recycling furnace capacity is idled, due to the lack of scrap availability. That's why we urge policymakers to support a more strategic approach to scrap management and make use of export fees, as stated in the Steel and Metals Action Plan," European Aluminium said.
"We are ready to work with policymakers and stakeholders to design a long-term strategy that solidifies the EU as a leader in the circular economy," it added. "Fairer access to aluminium scrap will secure feedstock for European recycling facilities, enabling larger-scale operations, higher profits, greater investment and more technology development, which will boost processing capacity and demand for more difficult scrap."
