Recent global developments suggest that scrap aluminium is increasingly treated as a “strategic material.” With western markets like the EU preparing export restrictions on scrap, and import tariffs favouring scrap over primary metal, demand from Asia for recycled aluminium is surging sharply. (Al Circle / Global Scrap News) alcircle+1

Summary:

Europe has taken a parallel — but more climate-driven — route. Aluminium scrap is excluded from the EU’s Carbon Border Adjustment Mechanism, which places carbon prices on primary and semi-finished imports but assigns zero emissions to recycled inputs. Brussels argues the exemption reflects scrap’s low carbon footprint, yet it also shields Europe’s secondary aluminium sector, which relies on affordable recycled feedstock for 75–80 per cent of its production.

Including scrap in CBAM would have raised domestic costs by EUR 50–200 per tonne (USD 58 – 232 per tonne) and undercut manufacturers already grappling with energy inflation. By leaving scrap outside the mechanism, the EU has effectively protected its secondary industry while pushing climate compliance costs onto primary metal instead.

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