The European Commission is preparing to formally present targeted measures on aluminium scrap export restrictions during the second quarter of 2026, with industry and policymakers engaged in final negotiations over tariff mechanisms and exemption structures as the critical Spring 2026 announcement deadline approaches. European Aluminium continues advocating for a minimum 30 percent export duty on all aluminium scrap classified under HS code 7602, applicable to all third-country destinations except the European Economic Area, Switzerland, and the United Kingdom.
The restrictions address European scrap shortage concerns driven by 1.2 million tonnes of annual exports (peaking at 1.2 million tonnes in 2024) flowing to India, China, Thailand, and Pakistan. In Q1 2025 alone, aluminium scrap exports to the United States surged 273 percent compared to the prior year, capitalizing on an arbitrage window created by US exclusion of aluminium scrap from Section 232 tariffs.
According to forecast if scrap export left unrestricted, EU net scrap exports could reach 2 million tonnes by 2030—almost four times current levels.
Proposed Restriction Mechanisms
Proposed restriction mechanisms include:
- An export duty on all aluminium scrap (CN 7602) of at least 30 percent, applicable to all third-country destinations except the EEA, Switzerland, and the UK
- Alternatively, the industry supports tariff rate quotas (TRQs) if designed with strict safeguards.
Market participants have already begun positioning ahead of Spring 2026 restrictions, with scrap collection delayed and yards reporting limited inflows as they await the formal announcement.
