By Giulia Petroni

The European Commission plans to restrict exports of aluminum scrap amid concerns that rising outflows of the resource could leave Europe short of a critical input for its decarbonization efforts.

"We are launching the preparatory work on a new measure to address the issue of aluminium scrap leakage," said EU trade chief Maros Sefcovic at the European Aluminum Summit on Tuesday.

The aim isn't to fully block aluminum scrap exports but to adopt a "balanced" measure that ensures access to adequate supplies of aluminum scrap at competitive prices, while taking into account the interests of all stakeholders in the value chain--from producers and recyclers to the downstream sector, which turns the metal into finished products.

"Scrap is a strategic commodity given its important contribution to circularity and decarbonisation, as production from secondary materials releases less emissions and is less energy intensive, as well as to our strategic autonomy," Sefcovic said.

The measure is set to be adopted by spring 2026, according to the Commission.

European Aluminium, which represents the industry in Europe, said an estimated 15% of EU recycling furnace capacity is currently idle due to insufficient domestic scrap availability, threatening both production continuity and future investments in the recycling sector.

U.S. President Trump's decision to double tariffs on imported steel and aluminum earlier this year, while exempting scrap, has led to rising volumes of European scrap being diverted to the U.S., as suppliers could sell it there without facing the higher tariffs applied to aluminum. Sustained demand from Asia has further exacerbated the shortage, according to the organization.

Producing aluminium from secondary raw materials requires far less energy and results in significantly lower carbon-dioxide emissions, making secure access to scrap crucial for decarbonisation efforts.

"Europe's future will to a large extent depend on its ability to secure access to the raw materials that our economy and our society require," said European Aluminium Director General Paul Voss. "It is therefore hugely encouraging to see the EU acting so decisively to save our scrap."

Write to Giulia Petroni at giulia.petroni@wsj.com

(END) Dow Jones Newswires

November 18, 2025 06:51 ET (11:51 GMT)

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