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| Aluminum scrap trade |
BIR Raises Concerns Over Potential EU Export Controls
The Bureau of International Recycling (BIR) warns that EU aluminum scrap trade restrictions could disrupt Europe’s recycling market. The Brussels-based organization emphasizes that export limitations are unnecessary. Meanwhile, the EU generates more scrap than domestic smelters can absorb efficiently. As a result, restrictions may distort market prices and reduce profitability for recyclers.
Market and Policy Implications for Aluminum Recycling
BIR highlights that restricting aluminum scrap flows would not increase domestic supply. Instead, it risks lowering recycled metal prices and discouraging investment. Furthermore, collection incentives could weaken, threatening EU recycling targets. In contrast, evidence-based policies focusing on energy affordability, regulatory harmonization, and recycled content uptake could strengthen the circular economy.
Recommendations for EU Policymakers
The organization recommends that any trade measures be temporary and narrowly targeted. Robust emergency clauses should protect employment and investment levels within the recycling sector. Therefore, policymakers should prioritize market-based solutions over rigid export controls to maintain a sustainable aluminum recycling ecosystem.
ScrapInsight Commentary
BIR’s warning signals potential market distortions if the EU imposes aluminum scrap trade restrictions. Recycled metal prices may fall, reducing collection incentives. Policy alternatives that focus on energy costs and harmonized regulations could better support EU circular economy objectives.
