EU delays aluminium scrap export curbs until Sep'26 amid industry divide

• EU aluminium scrap exports hit record 1.27 mnt in 2025, up 50% from 2019
  
  
• Primary smelters seek export curbs, recyclers warn of adverse market impact
  
  

The European Commission has postponed plans to introduce measures restricting aluminium scrap exports until September 2026, delaying a proposal that was initially expected by spring. The move comes as policymakers seek to balance competing interests between primary aluminium producers advocating tighter export controls and recyclers warning of unintended market consequences.

The proposal, first announced by European Trade Commissioner Maros Sefcovicin November 2025, aims to retain more aluminium scrap within the European Union to support domestic recycling and decarbonisation efforts.

According to industry association European Aluminium, EU aluminium scrap exports reached a record 1.27 million tonnes (mnt) in 2025, up nearly 50% from 2019 levels, with most shipments destined for Asian markets, particularly India. Export volumes continued to rise during the first four months of 2026.

Decarbonisation drives policy push

Aluminium scrap has become increasingly strategic for the European industry as recycling aluminium requires approximately 95% less energy than producing primary aluminium from bauxite.

With the EU pursuing ambitious carbon reduction targets, policymakers are evaluating measures to retain more recyclable material within the region and reduce dependence on imported scrap.

European Aluminium has argued that unrestricted exports are diverting valuable secondary raw materials away from European smelters, undermining investment in recycling and low-carbon aluminium production.

Recycling industry opposes export restrictions

The proposed measures have drawn opposition from Recycling Europe, which represents recyclers and metal recovery companies.

The association argues that only around 20% of aluminium scrap generated in Europe is exported and that much of this material consists of lower-grade scrap that cannot be efficiently processed by European smelters.

According to the group, restricting exports could reduce recycling activity, discourage future investments, and leave significant volumes of recyclable material uncollected or unprocessed.

The delay until September reflects the European Commission's effort to strike a balance between supporting domestic aluminium production and maintaining the competitiveness of the recycling sector.

India remains highly exposed to EU export market

India is one of the largest destinations for European aluminium scrap exports, supported by the country's rapidly expanding secondary aluminium industry.

The postponement provides temporary relief for Indian recyclers, as the European Union remains a key supplier of aluminium scrap to India. In 2025, India imported approximately 0.43 million tonnes (mnt) of aluminium scrap from the EU, accounting for nearly 20% of the country's total aluminium scrap imports. During 5MCY'26, imports from the EU stood at around 120,616 tonnes (t), again representing approximately 20% of India's overall aluminium scrap imports.

The delay also comes at a time when other exporting regions are tightening scrap availability. In June 2026, the United Arab Emirates imposed a temporary four-month restriction on exports of selected aluminium, copper, and ferrous scrap to support domestic recycling and downstream manufacturing. According to European Aluminium, India typically sources around 20% of its aluminium scrap imports from Gulf countries.

While the postponement delays any immediate disruption to Indian buyers, the implementation of export restrictions in Europe, alongside the UAE's ongoing measures, could gradually tighten global scrap availability. Such a scenario may lift aluminium scrap prices and push Indian recyclers to diversify procurement towards alternative sourcing regions over the medium term.

Although the postponement delays any immediate disruption to global aluminium scrap trade, uncertainty surrounding future EU export controls is likely to keep market participants cautious and prices supported.