European Metal Producers Call for Scrap Export Restrictions Amid U.S. Demand Surges

European manufacturers warn that the growing outflow of scrap metal threatens domestic supply chains and undermines the EU&rsquo;s carbon reduction strategies. The recent decision by U.S. President Donald Trump to impose a 50% tariff on imported steel and aluminum has significantly boosted American demand and prices for European scrap metal, which is currently exported duty-free, Reuters reports.In response, the European aluminum industry is calling on the EU to introduce control mechanisms like those used during the COVID-19 pandemic, when the export of protective equipment and vaccines required prior approval. Export duties are also being considered as a possible solution.According to European Commission data, recycling plays a key role in reducing CO₂ emissions, saving up to 95% of energy in aluminum production and 80% in steel production compared to primary production.The Europe Aluminum Group, which includes major industry players such as Alcoa, Befesa, and AMAG, reports that EU scrap exports to the U.S. nearly tripled in the first quarter of 2025, reaching 345,000 tons. While the U.S. retains much of its scrap for domestic use, the EU remains the world&rsquo;s largest exporter of metal waste.Challenges surrounding scrap metal exports are not new. In 2023 alone, the EU exported a record 19 million tons of ferrous waste, primarily to Turkey, India, Egypt, Pakistan, and the United States.While the EU typically opposes restricting exports, except in the case of health emergencies, weapons, or products with military applications, the European Commission has acknowledged the issue. It is currently assessing the impact of the current surge in scrap metal exports and is expected to decide in Q3 whether new trade measures are needed for steel, aluminum, and copper.However, the recycling industry is pushing back against the proposed restrictions. The European Recycling Industries&rsquo; Confederation (EuRIC) argues there is no shortage of scrap within the EU, stating that recyclers currently consume around 80% of the available supply. Due to U.S. tariffs, American manufacturers are aggressively sourcing scrap metal both domestically and abroad, driving a price gap between the two markets to as much as $750 per ton.

European Metal Producers Call for Scrap Export Restrictions Amid U.S. Demand Surges

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