The EU announced plans to restrict aluminium scrap exports to bolster its domestic recycling sector and secure raw materials for the circular economy. Financial Times

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The EU has announced plans to restrict exports of aluminium scrap to protect its industry, risking a fresh trade dispute with the US.

European trade commissioner Maroš Šefčovič said on Tuesday that the growing leakage of scrap from Europe risks its sustainability goals. Aluminium producers say their recycling plants are idle as valuable scrap is sold to the US and Asia for higher prices.

“We do not want to completely block aluminium scrap exports,” Šefčovič said in a speech in Brussels. “Rather, we want to prepare a balanced measure that will allow industries using aluminium to access adequate quantities of this strategically important material at competitive prices, in order to pursue their path towards decarbonisation, fully in line with a circular economy logic.

” US importers are likely to press their government to resist any change. Washington has imposed 50 per cent tariffs on imports of steel and aluminium, but not on scrap. As a result, US smelters have increased purchases of European scrap to produce fresh metal and avoid tariffs. 

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