Recyclers push back after US and EU smelting giants press for scrap export restrictions.
legislators are joining their European counterparts in considering restrictions on the export of aluminium scrap – with recyclers arguing it is a short-sighted approach.Such moves, backed by the major smelting companies, have already been touted in the EU’s Steel and Metals Action Plan.
European recyclers fear it could lead effectively to a ban on scrap exports, hitting them directly in the pocket and limiting their ability to invest in infrastructure.
US INITIATIVE
In a similar tack in the US, Michigan Congresswoman Haley Stevens has introduced the Secure Aluminum Supply Chains Act, ‘which would direct the US International Trade Commission to investigate the national and economic security risks posed by US aluminium scrap exports to adversarial nations’.
Stevens argues that, while US manufacturers rely heavily on scrap aluminium as an affordable and energy-efficient input, large volumes leave the country ‘including exports that may be supplying Chinese industries that seek to topple our manufacturing economy here at home’.
TheAct directs the commission to conduct a comprehensive investigation into exports to countries of concern and entities controlled by those countries. The study will examine the economic and national security risks posed by these exports and provide Congress with recommendations to strengthen domestic supply chains.
REMA RESPONSE
ReMA, representing US recycling supply chains, wants to engage with Stevens, policy makers and industry stakeholders to provide a complete understanding of aluminium recycling, domestic market dynamics and exports.
‘The United States generates more recycled aluminium of all grades than can be consumed by domestic manufacturers,’ argues ReMA president Robin Wiener.
‘These exports help maintain efficient recycling operations, support investment in infrastructure and ensure the recovery of valuable materials. As more US secondary aluminium capacity comes online, US recycling companies are ready to meet their feedstock demand.’
EU DEPENDENCE
Meanwhile, participants in an industry wide event on critical materials heard that Europe’s dependence on imported metals leaves it highly sensitive to geopolitical shocks because of its limited domestic production and processing capacity.
At a panel discussion during Commodities Trading Week in London in May, as reported by FastMarkets,Greenwich Metals trader Valery Sikorskiy said: ‘Europe is globally very dependent on imports of whatever metal or mineral we’re talking about. As a result, it is highly sensitive to geopolitical developments, whether in the Middle East or previously in Ukraine.’
According to Fastmarkets analysts, the global copper market is expected to move into a deficit of around 150 000 tonnes in 2026, widening to more than 300 000 tonnes in 2027, reinforcing the tightening supply outlook.
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