EU Commission Plans to Restrict Aluminium Scrap Exports to Non-OECD Countries by 2026

Originally scheduled to unveil crucial trade regulations on September 23, the Commission's internal deliberations revealed that the proposed measures would only encompass approximately half of the EU's aluminum scrap exports.

According to a statement from Séjourné’s cabinet, as reported by Reuters, the Commission has shifted its focus toward crafting a delegated act under the EU Waste Shipments Regulation. This new legislative action is set to prohibit the exportation of waste, including aluminum scrap, to non-OECD countries, albeit with specific exceptions for some EU candidate nations.

The proposal, open for public consultation, is expected to be finalized by the end of 2026, according to the statement. Fastmarkets has contacted the Commission for their input on the matter.

One European ingot producer voiced concerns to Fastmarkets on Friday, declaring, "This wouldn't meet the needs of our industry because scrap could still find its way to Asia via OECD countries. For us, this would be catastrophic. We have been vehement advocates for an erga omnes (applicable to all destinations) duty, as the benefits are obvious: it eliminates distinctions and thwarts any attempts at evasion."

EU Targets Aluminum Scrap Exports with New Trade Measures

Commissioner for Trade and Economic Security, Maroš Šefčovič, initially established the groundwork in 2025 for a new trade measure aimed at curbing what the Commission describes as the "leakage" of aluminum scrap from the EU. This marks a significant shift from the earlier trade measures the Commission had been formulating.

The Commission has engaged stakeholders in discussions on potential regulations regarding aluminum scrap under CN 7602 (aluminum waste and scrap). An earlier 15% export duty reported by a media outlet is now considered outdated, with the new approach potentially imposing more restrictive measures on certain physical trade flows by targeting specific destinations instead of merely raising export costs.

Both China and India, significant Asian recipients of EU aluminum scrap, are not part of the OECD. The full implications for the European aluminum scrap markets are still uncertain as the Commission has yet to issue the delegated act. This pending legislation will clarify how individual CN 7602 grades, end-of-waste materials, particular destination countries, and any potential exemptions will be managed.

Currently, the EU Waste Shipments Regulation, effective from May 21, 2027, will enforce stricter controls on the export of non-hazardous waste to non-OECD countries. Exports may still proceed under certain conditions to non-OECD countries that meet specific environmental standards and are included on an approved list.

• Crucial concern for European scrap merchants and secondary aluminum producers about the impact of the upcoming delegated act on export markets for aluminum scrap
• Potential outcomes include drastic reduction in major export markets or maintenance of access under an environmental qualification framework
• Influence on physical availability, pricing of scrap, and competitive dynamics between European and international buyers due to the act
• No official announcement or legal documentation on these changes by the European Commission yet
• Information primarily sourced from Séjourné’s cabinet as reported by Reuters