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Scrap metal exempt from Trump's steel and aluminium

tariffs

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Scrap a key to metal-makers' decarbonisation efforts

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EU aluminium scrap exports to U.S. tripled in Q1

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EU recyclers oppose scrap export curbs

By Philip Blenkinsop and Julia Payne

BRUSSELS, June 24 (Reuters) - Metal producers in the

European Union are lobbying the bloc to impose export duties or

curbs on scrap metal shipments "in the next few weeks" to stem a

sharp increase in flows to the United States caused by the Trump

administration's trade policies.

Europe's metal producers are warning of a shortage of scrap

and an upending of carbon-emission strategies after U.S. Donald

Trump's 50% levy on imported steel and aluminium heightened

demand, and sharply inflated prices, for tariff-free scrap.

The aluminium industry is asking the EU to stem outflows

using export authorisation measures, hitherto only used during

the COVID pandemic, when the European Commission demanded

companies request permission to export protective gear and

vaccine doses. Export tariffs would be another option.

"Scrap is a big issue," said Eurofer director general Axel

Eggert. "We are asking for an export duty on scrap," he said

highlighting that most non-EU producer countries had

restrictions in place.

Scrap is integral to the EU's push to reduce carbon

emissions in the metal industry. Recycling saves up to 95% of

the energy required for aluminium production and 80% for steel,

the European Commission has said.

Scrap metal exports to the United States nearly tripled to

6,028 metric tonnes in the first three months of 2025 versus the

same period a year earlier, albeit from a low base, turning a

trickle into a flood, said industry lobby group Europe

Aluminium, which includes Alcoa ( AA ), Befesa ( BFSAF ) and

AMAG Austria.

Total EU aluminium scrap exports were 345,000 metric tonnes

in the first quarter this year, according to Europe Aluminium.

With the United States now keeping its scrap, the EU will be

left as the main exporting region, it said.

Scrap exports were a growing problem for EU metal producers

even before Trump imposed duties on imports of primary steel and

aluminium in a bid to encourage U.S. domestic production, EU

metal producers said.

A record 19 million tonnes of ferrous scrap left the bloc in

2023, the majority to Turkey, but also to India, Egypt, Pakistan

and the United States, said European steel association Eurofer,

which includes Tata Steel, Thyssenkrupp and

ArcelorMittal.

Metal producers cannot wait for the bloc to strike a trade

deal with Trump before taking action, Europe Aluminium's head

Paul Voss said. European officials have said the EU may not be

able to strike a full deal by Trump's July 9 deadline.

Export authorisations had not been used this way before "but

extraordinary times call for extraordinary action," Voss added,

calling for measures "in the coming weeks".

CARBON FOOTPRINT

The EU sees itself as a champion of free trade and export

curbs are rare. Beyond pandemic restrictions, EU export controls

have been limited to shipments of arms, products that have

military uses and for countries subject to sanctions.

The European Commission said it was engaging regularly with

metal producers and recyclers, assessing the market situation.

It said it would determine in the third quarter whether a

trade measure was necessary for steel, aluminium and copper.

The tariffs have given U.S. metal producers incentive to

maximise their domestic purchase of scrap metal and scour

overseas markets. Industry players said a so-called "arbitrage

window" - a short-lived price gap between two markets - had hit

around $750 per tonne with the 50% tariff.

"If that arbitrage window stays, we will see massive damage

to companies that invested the most into the Green Deal," Rob

van Gils, CEO of Austria's Hammerer Aluminium Industries, said,

referring to the EU's green policy agenda to steer the bloc to

carbon emission neutrality by 2050.

Van Gils said companies which rely on buying scrap would

struggle if local scrap costs neared or even exceeded the market

price of final product, or end up buying primary metal from

third countries like India with high carbon footprints.

"The CO2 footprint of the aluminium industry will be down

the toilet," van Gils continued.

Europe's scrap sellers oppose export restrictions. Recycling

industry group EuRIC said there was no shortage of scrap in

Europe and that EU demand only absorbed some 80% of supply for

steel.

Eurofer's Eggert said export restrictions would help prevent

rival producers overseas from buying EU scrap to then sell

low-carbon recycled steel back to the bloc.

"We are not asking for a ban, but we need to retain more

scrap, or incentivise its use scrap in Europe for our

decarbonisation," he said.