Recycling Europe and numerous other associations and companies from the recycling industry have reiterated their serious concerns about potential restrictions on EU exports of aluminium scrap. In a letter addressed to Executive Vice-President for Prosperity and Industrial Strategy Stéphane Séjourné and Trade Commissioner Maroš Šefčovič on Thursday, the 90 signatories called on the Commission to give greater consideration to the interests of Europe’s recycling industry when assessing possible trade measures.
The associations and companies reject what they regard as the incorrect assumption that Europe is facing a shortage of aluminium scrap. This, they argue, does not reflect current market realities. Instead, the signatories emphasise the central role played by Europe’s recycling industry in supplying high-quality recycled materials. In many cases, the availability of recycled materials exceeds domestic demand. By exporting aluminium scrap, the recycling industry makes a positive contribution to the EU’s trade balance.
As reported, the European Commission has been examining possible export duties or other restrictions on aluminium scrap exports from the EU with the aim of increasing the availability of secondary raw materials and strengthening the competitiveness of the European aluminium industry. A consultation carried out between mid-December and the end of January generated a total of 142 responses. The Commission intends to present its proposal for measures during the current quarter.
In their joint letter, the recycling associations and companies express their full support for the objective of a strong and competitive European aluminium industry. However, "policies aimed at strengthening one part of the value chain should not come at the expense of another – especially one that is an essential pillar of that same ecosystem, delivering on circularity, competitiveness and resource efficiency”, they argue.
Like primary aluminium producers, EU recyclers face rising operating costs, strict environmental and regulatory requirements and intensifying global competition. Decisions on possible trade measures should therefore be based on robust evidence and take account of all parts of the value chain, according to the joint letter.
Risk of significant unintended consequences
In the view of the signatories, export restrictions introduced in the absences of evidence of a structural market deficit could have significant unintended consequences and have serious negative effects on Europe’s recycling industry. They warn that restrictions would likely translate into reduced recycling activity, postponed or cancelled investments and substantial quantities of recyclable material not being collected and processed at all. This would directly undermine the EU’s circular economy objectives, weaken industrial value chains and put jobs at risk.
The signatories also comment that "the current political and economically context demonstrates that the fallacious arguments previously used to demand export restrictions on recycled aluminium could also be applied to aluminium ingots and billets”. Disruptions to the aluminium supply in the Gulf region had driven price increases and prompted European exports of aluminium products to Asia, taking advantage of higher demand abroad while EU demand remains weak due to a slowdown in key sectors, according to the letter.
Overall, the signatories say they are "deeply concerned” about the far-reaching negative implications that export restrictions would have not only for the recycling sector but also for the European aluminium industry as a whole and for the circular economy more broadly. The Commission should therefore carefully reassess both the need for and the potential impact of export restrictions on aluminium scrap and work together with the recycling sector to identify solutions that would constitute a "truly balanced trade measure” capable of genuinely strengthening Europe’s industrial base.
Besides the umbrella organisation Recycling Europe, the letter was signed by national recycling industry associations as well as individual companies across Europe. The corporate signatories include Derichebourg, EMR, Stena Recycling, Suez, Cronimet, Paprec, and Metallum.
