Despite an agreement in the EU-US tariff dispute, the problem of aluminium scrap outflow from Europe remains unresolved – and could get worse. Europe’s recycling industry is warning of a permanent loss of raw materials and calling for immediate export restrictions.

While the recent agreement between the EU and the US marks a step toward deescalation in the tariff conflict, it does not solve the pressing problem of aluminium scrap outflows from Europe.

Even after the agreement, aluminium products will be subject to a significantly increased tariff rate of 50 percent, while aluminium scrap will be subject to a tariff rate of only 15 per cent. This allows aluminium scrap to be exported to the US at significantly more attractive conditions than primary and semi-finished products, for example.

Rob van Gils, President of Aluminium Deutschland e.V. said: ” The current tariff regulations do not solve our problem, but rather only exacerbate the imbalance in the aluminium scrap market. The existing arbitrage window remains and threatens to become entrenched in the long term. This makes a permanently increased outflow of scrap from Europe likely – with catastrophic consequences for Europe’s recycling industry .”

Even before the tariff conflict, the trend in scrap exports from Europe was alarming, especially to Asia. Major markets such as India, Malaysia, and China have already introduced their own export restrictions on aluminum scrap, further compromising European recycling companies internationally.

Although EU Commission President Ursula von der Leyen has raised the prospect of possible tariff reductions and a quota system for steel and aluminium, to what extent, and when these measures will become a reality remains unclear.

Mr. van Gils continued: “Europe must now act decisively and swiftly. We need horizontal export restrictions on aluminium scrap more urgently than ever. Only in this way can we restore balance in the scrap market, secure access to essential domestic raw materials, and strengthen Europe’s industrial base in the long term .”