The Aluminum Association has urged the US federal government to take immediate action to keep more aluminium scrap within the country. The Association argues that limiting exports of high-quality scrap, particularly used beverage containers (UBCs), will support US manufacturing and supply chains. The move aims to address the growing gap between domestic aluminium demand and supply.
_0_0.jpg)
Image for representational purpose
Every year, the US consumes between 5 and 6 million tonnes of aluminium scrap but exports more than 2 million tonnes. With US aluminium production heavily reliant on both domestic and imported scrap, keeping more scrap at home will reduce reliance on imports. This is especially critical as US manufacturers face an increased need for scrap in the face of significant investments in new plants and capacity.
The Aluminum Association's proposal includes a ban on UBC exports outside of North America, where regional industries depend on the free flow of scrap. The association also calls for updated tracking mechanisms, such as revised US Harmonised Tariff Schedule (USHTS) codes, to enforce the restrictions effectively. Investment in new recycling technologies, such as those outlined in the CIRCLE Act, is also necessary to enhance scrap collection and sorting.
Export controls, according to the Association, would help alleviate a 1.3 million tonnes trade deficit in aluminium scrap. This deficit has been exacerbated by exports to non-market economies, such as China, which reprocess scrap and produce competing products. As China rapidly expands its aluminium recycling capacity, the US risks losing its competitive edge in the aluminium market.
“Scrap aluminium is a vital feedstock for American manufacturers, especially at a time when US aluminium firms are investing and need reliable and affordable access to metal like never before,” said Charles Johnson, president and CEO of the Aluminum Association. “Smart, targeted export controls that keep our highest-quality scrap, like used beverage containers, within our borders will help to build a stronger US aluminium industry and support American manufacturing in general. Otherwise, we’re giving up our competitive edge and letting non-market economies like China dominate yet another aluminium market.”
The Aluminum Association emphasises that aluminium scrap is a vital strategic asset for US national security, manufacturing and infrastructure. Recycling aluminium saves energy and reduces manufacturing costs, with the potential to save 31 billion kWh annually. This is equivalent to the power used by about 3 million homes, helping to address energy demand during peak times.
The proposal, which focuses on high-quality scrap, would limit disruptions in the market and allow time for better sorting and processing technologies to be developed. The Aluminium Association believes that such measures will support the growth of the US aluminium industry, ensuring that American manufacturers and recyclers have access to the scrap metal needed to remain competitive.
To know more about the recycled aluminium market, read “World Recycled ALuminium Market Analysis Industry forecast to 2032”
Responses
