The European Union’s metal producers are intensifying their push for the bloc to introduce export curbs or duties on scrap metal shipments, as soaring US demand—driven by the Trump administration’s new trade policies—threatens Europe’s supply.
Industry groups are calling for immediate measures, warning of potential disruptions to both production and the EU’s long-term carbon reduction plans, reported Reuters.
The Trump administration’s decision to impose a 50 per cent levy on imported steel and aluminium has fuelled an upsurge in US demand for scrap metal, which remains exempt from the tariffs. The sudden surge in American interest has led to price spikes, and Europe’s producers fear being squeezed out of essential raw material supplies.
Scrap Export Surge Sparks Supply Fears
Scrap metal plays a critical role in the EU’s green transition strategy, as recycling consumes up to 95 per cent less energy for aluminium production and 80 per cent less for steel, according to the European Commission.
However, with rising US demand, European industry leaders are warning that these environmental goals could be undermined if scrap shortages worsen.
“Scrap is a big issue,” Eurofer director general Axel Eggert stressed. “We are asking for an export duty on scrap,” he said, noting that most non-EU producer countries already maintain restrictions on scrap exports.
Data from Europe Aluminium, which represents companies including Alcoa, Befesa and AMAG Austria, revealed that EU scrap exports to the United States nearly tripled to 6,028 metric tonnes in the first quarter of 2025, compared to the same period last year.
While the volume remains modest, industry leaders are concerned about the accelerating pace. Total EU aluminium scrap exports reached 345,000 metric tonnes in the same period. With the US retaining more of its domestic scrap, the EU increasingly finds itself as the dominant exporter globally.
The scrap export issue predates Trump’s tariffs on primary steel and aluminium imports, which were aimed at boosting US domestic production. Eurofer reported that in 2023, a record 19 million tonnes of ferrous scrap exited the EU, mostly destined for Turkey, but also for India, Egypt, Pakistan, and the United States.
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Industry Calls for Immediate EU Action
Metal producers argue they cannot afford to wait for the EU to negotiate a trade deal with Washington. Europe Aluminium’s head Paul Voss emphasised the urgency, stating, “Extraordinary times call for extraordinary action,” as he urged Brussels to introduce measures “in the coming weeks.” EU officials have acknowledged the challenges, noting that a full trade agreement may not be achievable by Trump’s July 9 deadline.
One option under discussion is the introduction of export authorisation requirements, similar to measures used during the COVID-19 pandemic, when the European Commission mandated special permission for exports of protective equipment and vaccines.
Export tariffs are also on the table, although such restrictions are rare in the EU’s traditionally free-trade-oriented policies. Beyond the pandemic, EU export controls have largely been limited to military items, dual-use goods, and sanctioned countries.
The European Commission said it is maintaining close dialogue with producers and recyclers while assessing the situation. It plans to decide in the third quarter whether any trade actions are necessary for the steel, aluminium, or copper sectors.
Carbon Emission Goals at Risk
The industry warns that the current situation could jeopardise the EU’s Green Deal ambitions. Rob van Gils, CEO of Austria’s Hammerer Aluminium Industries, expressed concerns about the widening price gap between European and American scrap markets. “If that arbitrage window stays, we will see massive damage to companies that invested the most into the Green Deal,” he said, referring to the EU’s plan to achieve carbon neutrality by 2050.
Van Gils cautioned that if local scrap prices rise too high, companies may have no choice but to purchase primary aluminium from countries like India, which have significantly higher carbon footprints. “The CO2 footprint of the aluminium industry will be down the toilet,” he added.
However, not all voices in the sector support export restrictions. The recycling industry group EuRIC argued that there is currently no shortage of scrap in Europe, stating that EU demand consumes only around 80 per cent of available steel scrap supply. Nevertheless, Eurofer’s Eggert contended that controls would help prevent foreign competitors from acquiring EU scrap and reselling low-carbon recycled steel back to Europe. “We are not asking for a ban, but we need to retain more scrap, or incentivise its use in Europe for our decarbonisation,” he concluded.
