Hydro highlights need for stronger aluminium scrap safeguards under EU waste rules

Hydro is calling for stronger measures to keep more aluminium scrap in Europe and support investment in the region’s recycling capacity. The company made the call during European Commission Executive Vice-President Stéphane Séjourné’s visit to Hydro’s aluminium recycling plant in Clervaux, Luxembourg.

The facility processes post-consumer aluminium scrap from vehicles, buildings and infrastructure and has an annual capacity of 115,000 tonnes. Discussions during the visit covered aluminium scrap exports, the EU Waste Shipment Regulation and the policy conditions needed to support recycling in Europe.

Rising scrap exports pressure recyclers

The EU is considering a 15 per cent levy on aluminium scrap exports to retain more recyclable metal within Europe. The proposal comes as EU scrap exports reached a record 1.3 million tonnes in 2025, about 50 per cent higher than in 2019, with India and China among the main destinations. 

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European producers say stronger overseas demand is letting buyers outside the region compete more aggressively for scrap, putting pressure on Europe’s recycling industry.

Hydro said recyclers are struggling to secure enough scrap at competitive prices as buyers outside Europe can offer higher prices, partly because of subsidies and other market distortions.

Paul Warton, executive vice president for Hydro Extrusions and chair of European Aluminium, said “When buyers outside Europe can pay more because of subsidies and other market distortions, European plants are left with lower capacity utilisation and less confidence to invest. We need effective measures that address this imbalance.” 

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Hydro supports efforts to restrict exports of aluminium scrap classified as waste to non-OECD countries under the Waste Shipment Regulation. However, Warton said the rules should also address scrap that has received End-of-Waste status to prevent potential circumvention.

Hydro calls for wider recycling measures

According to Hydro, the proposed Waste Shipment Regulation measures should be assessed based on whether they improve access to scrap for European recyclers. If they do not, the company supports additional measures, including broader export controls and an export fee.

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Warton said, “Hydro has closed four recycling facilities in Europe in the last two years. Strong and effective policy action is needed to avoid further closures.” 

The company also wants the EU to address the scrap loophole under the Carbon Border Adjustment Mechanism (CBAM) and introduce measures that increase demand for recycled aluminium.