EU plans to impose restrictions on the export of aluminium scrap will probably be delayed until at least next year, despite initial hopes that such a measure would be introduced in the second quarter.
The European Commission announced in November last year that it had began preparatory work on a new measure aimed at ensuring that Europe's aluminium recycling industry has access to adequate aluminium scrap, and launched a public consultation on this in December.
Trade and economic security commissioner Maros Sefcovic said at the time that the measure was likely to be adopted in spring this year.
But the EU now looks set to make an official proposal to impose a 15pc tariff on aluminium scrap exports on 9 September, sources confirmed to Argus. A further consultation process will surely follow such a proposal, probably pushing the implementation of any tariff into next year even if EU member states agree to it.
"Knowing how EU mechanisms work, you can't expect anything to happen this year," one scrap trader said.
EU aluminium scrap exports rose by 50pc from 2019 to 1.2mn t in 2024 and reached 1.27mn t last year, with the bulk going to India and other buyers in Asia. The consequent increase in aluminium scrap prices in Europe has squeezed the margins of secondary aluminium producers. Scrap traders that have sold increasing volumes of aluminium scrap for export that are able to pay higher prices than their European peers will stand in opposition to any export restriction.
Sources have also questioned whether the proposed measure will significantly lower exports, given that the prices offered by Indian buyers in recent years have regularly been more than 15pc above domestic European prices.
Nevertheless, sources representing the European recycling industry expressed optimism over the proposed tariff, noting that such a step for the EU would have been "unimaginable" just a few years ago.
