Metal producers in the European Union have urged the bloc to impose export restrictions or impose duties on the shipment of scrap metal.
According to a Reuters article, this push is expected to take place “in the coming weeks” and aims at countering a substantial increase in exports into the US. This trend has been attributed to Trump’s trade policies.
The demand for scrap metals that are not subject to tariffs has risen dramatically due to the 50% tariff placed by US President Donald Trump. This is causing prices to skyrocket.
The situation has caused concern for the metal manufacturers in Europe, as they are warning about a shortage of scrap and disruptions to their strategies on carbon emissions.
The aluminum industry is urging the EU to adopt export authorisations measures in order to curb outflows. This tactic was previously only used during the COVID-19 Pandemic when protective gear and vaccines were exported.
Alternative solutions to the problem of export tariffs include:
Axel Eggert, Eurofer’s director general, highlighted the fact that “scrap represents a major problem.”
Eggert said in a Reuters article:
Export duties on scrap is what we are asking.
He also highlighted the fact that many non-EU producers have restrictions.
Imports, exports
Scrap metal is essential to support EU carbon emissions reduction goals for the metals industry.
Recycling aluminium can save up to 95 percent of energy required for production. For steel, this figure is 80%.
According to European Aluminium, US scrap metal imports from the EU in the first quarter 2025 will nearly triple from last year’s level, reaching 6,028 tonnes.
The significant growth, which is a result of a small start, has transformed a minor stream into a major one.
In the first quarter, EU aluminum scrap exports totaled 345,000 metric tons.
The EU will soon become the main exporting area, as the US is now keeping more scrap.
It takes time to reach a trade agreement
EU metal producers had long been concerned about scrap exports, and this was even before Trump imposed duties on imports of primary steel, aluminium, and other materials to increase US production.
The EU exported 19 million tonnes ferrous scrap in 2023. Turkey was the primary destination.
According to the European Steel Association Eurofer, other significant destinations include India, Egypt Pakistan and the United States.
Paul Voss of European Aluminium stated that the metal industry cannot wait until the EU finalises a deal with Trump.
European officials indicated that it may be impossible to reach a comprehensive agreement by Trump’s date.
Voss argued that extraordinary circumstances require extraordinary measures, and urged the government to take action in the next few weeks.
Carbon footprint
Export restrictions are rarely enforced by the EU. The EU is a strong advocate for free trade.
In the past, these controls were limited to measures related to pandemics, weapons shipments, dual use products that have military applications and goods intended for sanctioned nations.
Metal producers and recycling companies are actively engaged by the European Commission to evaluate the market.
In the third quarter, it is anticipated that a decision will be made on whether or not trade measures for aluminium, steel and copper are required.
Tariffs on US scrap metal have encouraged US producers to maximize their purchases of domestic scrap and expand overseas markets.
A temporary difference in price of about $750 per ton – also known as “arbitrage windows” – was reported by industry participants due to the tariff.
Rob van Gils is the CEO of Austrian Hammerer Aluminium Industries. He said:
The Green Deal will suffer a massive blow if the arbitrage window remains.
The EU green policy agenda is a set of policies that aims to lead the EU to carbon neutrality in 2050.
Van Gils emphasized a possible challenge for businesses that rely on scrap purchasing.
He stated that if the scrap prices in the local area approach or exceed the price of the finished product, then these companies could be forced to purchase primary metals from countries such as India. This would increase carbon dioxide emissions.
Export restrictions are not supported by European scrap dealers. EuRIC, a recycling industry association, says that Europe does not have a scrap shortage.
The EU demand for steel is only about 80% of what’s available.
The post EU Metal Producers Push for Export Limits on Scraps Amid US Demand Surge may be updated as new developments unfold.
