Hydro urges stronger protection for European aluminium recycling

Hydro is calling for stronger measures to protect recycling capacity and future investment as increasing volumes of aluminium scrap leave Europe.

The call was made during a visit by European Commission Executive Vice-President Stéphane Séjourné to Hydro’s aluminium recycling plant in Clervaux, Luxembourg.

The Clervaux plant recycles post-consumer aluminium scrap from products including vehicles, buildings, and infrastructure with a capacity of 115,000 tonnes per year.

The visit included discussions on aluminium scrap exports, the EU Waste Shipment Regulation, and the framework conditions for aluminium recycling in Europe.

Europe’s aluminium recycling industry is facing increasing difficulties securing sufficient scrap.

EU exports of aluminium scrap have increased by more than 50% since 2019, reaching approximately 1.26 million tonnes annually.

Buyers outside the EU can pay more for scrap than European recyclers, partly due to subsidies and other market distortions. This weakens the basis for operating and investing in European recycling capacity.

Paul Warton, Executive Vice President for Hydro Extrusions and Chair of European Aluminium, said: “Europe has invested significantly in aluminium recycling capacity, but recyclers are struggling to secure sufficient scrap at competitive prices.

“When buyers outside Europe can pay more because of subsidies and other market distortions, European plants are left with lower capacity utilisation and less confidence to invest. We need effective measures that address this imbalance.”

Warton, who spoke at the event in Clervaux, says Hydro supports efforts to restrict exports of aluminium scrap classified as waste to non-OECD countries under the Waste Shipment Regulation.

However, the company says the effectiveness of the measure will depend on closing possible routes for circumvention.

Warton said: “The proposed approach can contribute to addressing the problem, but it must cover more than material formally classified as waste.

“Exports of scrap that has obtained End-of-Waste status must also be addressed since End-of-Waste could freely be exported both to OECD and non-OECD countries. Otherwise, substantial volumes may continue to leave Europe.”

Hydro welcomes the Commission’s efforts to address aluminium scrap exports.

However, the effectiveness of the proposed approach through the Waste Shipment Regulation must be assessed against its ability to reduce scrap leakage in practice.

If it does not improve access to scrap for European industry, additional measures, including closing circumvention possibilities and an export fee with broad product and geographical coverage, need to be implemented.

Warton said: “Hydro has closed four recycling facilities in Europe in the last two years. Strong and effective policy action is needed to avoid further closures.”

Hydro also called for changes to other EU policy instruments affecting aluminium recycling.

These include closing the scrap loophole in the Carbon Border Adjustment Mechanism (CBAM) and introducing measures that increase demand for recycled aluminium.