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EU to slap 15% levy on aluminium scrap exports

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The European Commission will levy a 15% tax on aluminium scrap exported from the bloc, set to start on September 9. The measure targets shipments to the United States and Asia, where overseas smelters buy cheap European scrap, melt it and re‑export finished metal back to Europe. It marks the first time the strategic EU taxes goods leaving its market.

EU producers say they are being outbid as foreign smelters can afford higher scrap prices, squeezing margins that already suffer from rising energy costs significantly. Fastmarkets data show scrap tonne prices jumping from €1,500 to €2,240 since October, while primary aluminium rose more modestly to €3,150. In 2025, exports hit a record 1.27 million tonnes, a 50% increase since 2019.

Industry body European Aluminium warns the levy could leave 15% of EU recycling furnace capacity idle, deepening a 2 million‑tonne annual scrap shortfall and threatening up to €40 billion in sector revenue and 250,000 jobs. Trade commissioner Maroš Šefčovič pledged action in June, but scrap dealers and the FEAD lobby argue the rule harms the circular economy. Member states must now firmly approve the proposal.