Scrap aluminium is increasingly viewed as a critical raw material globally, as recycling gains ground due to energy and emissions concerns, and primary supply remains pressured. Reuters+1

Summary :

Aluminium is already there. The metal is infinitely recyclable and remelting it requires only five percent of the energy needed to make virgin metal, which means a much lower carbon footprint.

Scrap’s importance as a feedstock for European manufacturers has steadily increased over recent years as many of the region’s aluminium smelters have succumbed to high energy prices. The region’s annual primary aluminium production has fallen by a quarter since 2011.

The worry is that European recycling capacity is now also at risk, with European Aluminium estimating around 15% of the bloc’s recycling furnace capacity is idle for want of feed.

Aluminium scrap is exempt from U.S. import tariffs on primary metal and semi-manufactured products, doubled to 50% by U.S. President Donald Trump in June. But the resulting arbitrage window is accelerating Europe’s scrap leakage, the association warns.

Article Link :

https://www.reuters.com