- India remains key destination for EU scrap
- Export costs could rise for importers
The European Union is preparing to introduce a 15% levy on aluminium scrap exports, marking a significant shift in its approach to retaining secondary raw materials for domestic recycling and downstream manufacturing.
According to media reports, the proposal is expected to be presented on 9 September and would represent the first time the European Commission has imposed a charge on exports from the bloc. The measure still requires approval from EU member states before implementation.
The proposal aims to address growing concerns among European aluminium producers, who argue that overseas buyers, particularly from Asia and the United States, are outbidding domestic recyclers for aluminium scrap. European Aluminium estimates that the EU exported a record 1.27 million tonnes of aluminium scrap in 2025, nearly 50% higher than 2019 levels, with India and China emerging as the largest destinations.
The industry also estimates that around 15% of Europe’s aluminium recycling furnace capacity remains idle due to insufficient scrap availability, with an annual feedstock shortfall of nearly 2 million tonnes.
For India, the proposal warrants close attention. The European Union accounted for nearly 20% of India’s aluminium scrap imports in both 2025 and 5MCY’26, making it one of the country’s largest suppliers. If approved, the export levy could increase procurement costs for Indian buyers, support global aluminium scrap prices and encourage diversification towards alternative sourcing regions.
The proposal follows the UAE’s recent temporary restrictions on aluminium, copper and ferrous scrap exports, reinforcing a broader global trend of retaining recyclable materials to strengthen domestic recycling, improve resource security and support low-carbon manufacturing.
Leave a Reply