EU aluminium scrap export measure delayed as Commission shifts from duty to non-OECD restrictions

The European Commission has delayed its planned measures on aluminium scrap exports, replacing the earlier proposal for export duties with restrictions on waste shipments to non-OECD countries.

European Aluminium said the change has added to discomfort across the aluminium industry, which has been waiting for measures to address the rising flow of scrap out of Europe. The association is now calling for a trade measure with wider territorial coverage and product scope.

The Commission had initially planned to introduce restrictions in the second quarter of 2026, later moving the timeline to September. The proposed export duty has now been withdrawn, with the Commission instead preparing a delegated act under the Waste Shipment Regulation.

Under the new approach, exports of waste, including aluminium scrap, to non-OECD countries would be restricted, with some EU candidate countries exempted. The new provisions are expected to apply from 2027.

Director General of European Aluminium, Paul Voss, said, “We are frustrated by the delay in bringing forward measures to address Europe's aluminium scrap leakage, given the scale and urgency of the problem," 

Industry divided over the new approach

European Aluminium had supported the earlier export-duty proposal. However, the association said political decisions to exclude current and potential EU free-trade agreement partners would have noticeably reduced the measure's coverage. This includes major scrap destinations such as India. They said the proposed duty would have covered only around half of EU aluminium scrap exports.

Voss said the industry remains concerned about the delay but would support alternative measures if they can address the problem more effectively. He added, “We can support and urge the Commission to put them in place as quickly as possible. There is absolutely no time to waste.”

The Circular Metal Association (CMA) takes a different view. Its president, Murat Bayram, said recyclers are already preparing for the new Waste Shipment Regulation requirements and need clarity on how the rules will work in practice.

Bayram sees a positive signal in the Commission's decision to pull back from the export tariff option. He said, “These already include significant new obligations, such as independent audits of receiving facilities outside the EU.”

Bayram also warned that restricting exports would not automatically create demand for recycled aluminium within Europe. Lower production in industries such as automotive and machinery could reduce domestic demand for recycled metal, while European manufacturers may not always need the same scrap grades and qualities that are currently exported.

India remains a major destination

The EU exported around 1.3 million tonnes of aluminium scrap in 2024-25. More than 22 per cent went to the 16 non-EU OECD countries. India alone imported around 383,000 tonnes from the EU last year.

Besides India, Thailand and Pakistan are among the major destinations for European aluminium scrap. Therefore, tighter restrictions could force these markets to look for additional supplies elsewhere. The new restrictions could affect up to 950,000 tonnes, or around 75 per cent of EU aluminium scrap exports.

The policy debate comes as European aluminium scrap prices remain volatile. The Platts assessment for European aluminium auto shreds reached EUR 2,560 (USD 2968) per tonne in June, up EUR 760 (USD 881) from the January low of EUR 1,800 (USD 2,087) per tonne.