EU Drops Aluminium Scrap Export Duty

The European Union has abandoned plans to impose a 15% export duty on aluminum scrap amid concerns that the measure could complicate a free trade agreement with India, Reuters reported, citing sources familiar with the discussions.

The duty was intended to protect Europe’s smelting industry from rising scrap prices and competition from overseas. However, internal negotiations weakened the proposal, with a draft seen by Reuters exempting 91 countries and territories, including India.

India is the largest buyer of EU aluminum scrap, accounting for around one-third of the bloc’s exports. Sources said pressure from New Delhi contributed to the proposal being watered down.

European aluminum producers expressed strong disappointment with the reversal and warned of further recycling plant closures. EU scrap exports have risen by 51% since 2019, reaching a record 1.26 million metric tons in 2025.

The Commission will instead seek to curb exports through the Waste Shipment Regulation, which from May 2027 will ban exports of non-hazardous waste to non-OECD countries unless they qualify for an exemption. India, Thailand and Malaysia failed to meet the requirements for metal waste exemptions and will therefore be unable to buy scrap directly from the EU.

The industry remains skeptical that the rules will prevent circumvention and has warned that trade restrictions may ultimately still be needed.

(Reuters, max)