The European Commission has abandoned its plan for export duties on aluminium scrap, opting instead for restrictions on waste shipments to non-OECD countries that will not take effect until 2027. The reversal, which follows two earlier delays, has left the aluminium industry divided over whether Brussels is addressing the problem or simply rearranging it.

From tariff to shipment restriction

The Commission initially intended to impose export duties on aluminium scrap leaving the bloc, with measures originally slated for the second quarter of 2026. That timetable slipped to September. Now the duty idea has been withdrawn entirely. In its place, officials are preparing a delegated act under the Waste Shipment Regulation that would restrict exports of waste, including aluminium scrap, to countries outside the Organisation for Economic Co-operation and Development. Certain EU candidate countries would be exempted.

The shift from a tariff to a shipment restriction is more than a technical change. A duty applies broadly, raising the cost of exporting scrap regardless of destination. A non-OECD restriction, by contrast, leaves a large portion of trade untouched. More than 22 per cent of the EU's aluminium scrap exports in 2024-25 went to the 16 non-EU OECD countries, which would remain open under the new approach.

Why the duty proposal fell short

European Aluminium, the industry association representing primary smelters and recyclers, had backed the export duty. But it also acknowledged a problem: the political decision to exempt current and prospective EU free-trade agreement partners would have limited the tariff's reach to roughly half of all EU aluminium scrap exports. India, which alone bought around 383,000 tonnes of European scrap last year, falls into that excluded category. Thailand and Pakistan are also major buyers.

Paul Voss, director general of European Aluminium, made clear that the industry's frustration is directed at the delay rather than the mechanism itself. "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," he said. Voss added that the industry could support alternative measures if they prove more effective, but pressed for speed: "There is absolutely no time to waste."

The recycler's counter-argument

Bayram also raised a point that the duty advocates tend to sidestep: restricting exports does not create domestic demand. With automotive and machinery production running below capacity in several European markets, demand for recycled aluminium is soft. European manufacturers may not need the same grades and qualities of scrap that currently find buyers in South and Southeast Asia. Scrap kept in Europe by law could end up sitting in warehouses rather than feeding furnaces.

The trade flows at stake

The EU exported approximately 1.3 million tonnes of aluminium scrap in 2024-25. Under the proposed non-OECD restriction, up to 950,000 tonnes, or about 75 per cent of that total, could be affected. That figure is strikingly higher than the roughly 50 per cent coverage the earlier duty would have achieved, because the non-OECD approach casts a wider net geographically. India, Thailand and Pakistan, none of which are OECD members, would all face restrictions.

Yet there is a catch. The OECD country list includes Turkey, South Korea and several others that import significant volumes. Trade could simply be redirected rather than retained, with non-OECD buyers finding alternative suppliers outside Europe while OECD-bound shipments increase.

Price volatility adds urgency

The policy debate is playing out against a backdrop of volatile pricing. The Platts assessment for European aluminium auto shreds climbed to EUR 2,560 per tonne in June 2026, a rise of EUR 760 from the January low of EUR 1,800 per tonne. For smelters seeking to secure domestic feedstock, that volatility strengthens the argument for keeping scrap within the bloc. For recyclers selling into global markets, it underlines the premium that overseas buyers are willing to pay, precisely the premium that restrictions would cut off.

People mentioned

  • Paul Voss

    Director General, European Aluminium

  • Murat Bayram

    President, Circular Metal Association

Organisations

European Aluminium · Circular Metal Association · European Commission