Core Viewpoint - The European Union's aluminium sector is advocating for the imposition of approximately 30% duties on scrap metal exports to prevent domestic shortages and maintain competitiveness against Asian buyers [1][2][3]. Group 1: Export Trends and Economic Impact - EU aluminium scrap exports reached a record 1.26 million metric tons in 2024, marking a 50% increase compared to five years ago, with a significant portion directed towards Asia [1]. - The situation has deteriorated due to U.S. import tariffs, which are set at 50% for aluminium but only 15% for scrap, leading to increased scrap imports into the U.S. and a shift in focus for Asian buyers towards EU supplies [2]. Group 2: Policy and Industry Response - European Aluminium and Eurofer have engaged with the European Commission to advocate for an export levy, emphasizing the need for public policy to address market failures and protect Europe's strategic interests [3]. - The EU has begun monitoring scrap exports since July and plans to evaluate the necessity of action by the end of the third quarter [3]. Group 3: Recycling and Environmental Considerations - Scrap is crucial not only for domestic producers but also for the sector's decarbonization efforts, as recycling aluminium consumes 95% less energy than producing it from mined bauxite [4]. - European companies have invested €700 million (approximately $821 million) to enhance recycling furnace capacity to 12 million tons [4]. Group 4: Global Context and Domestic Challenges - Many non-EU countries, including India and China, already impose restrictions on metal scrap exports, highlighting a global trend towards limiting such exports [5]. - The recycling industry has pointed out that the rise in scrap exports is due to low domestic demand and inadequate capacity to process mixed scrap, such as that from shredded vehicles [6].