Germany's aluminium sector is raising serious concerns about the far-reaching implications of the recently imposed US tariffs on aluminium. While hefty duties have been slapped on primary aluminium and aluminium-intensive products, scrap aluminium remains exempt, a move that industry leaders warn will undermine the European market.
Image credit: Global Trade Metal Portal
American buyers, capitalising on the tariff loophole, are aggressively snapping up aluminium scrap at premium prices. This surge in demand is fuelling sharp price hikes and triggering mounting shortages across Germany and Europe. Industry experts caution that the unchecked export of scrap metal risks destabilising local supply chains, leaving domestic manufacturers vulnerable to raw material scarcity and sparking fears of a wider sell-off in the European aluminium market.
They argue that the imbalance threatens to undermine the competitiveness of Europe's aluminium industry at a critical time, as the sector grapples with global trade pressures and ongoing sustainability challenges.
Global recycled aluminium usage across the region, 2024 (%)
Source: AL Circle Research estimate
Recycled aluminium usage worldwide increased from 27.7 million tonnes in 2023 to 28.4 million tonnes in 2024. Usage of more post-consumer scrap (end-of-life) aluminium products is increasing noticeably in the US and European markets and is set to advance further in the coming years. Similarly, demand for recycled aluminium is catching up in developing countries, and large players are investing in setting up recycling facilities.
Rob van Gils, President of Aluminium Deutschland, emphasised, "The German government must advocate for export tariffs on aluminium scrap in Brussels to halt the uncontrolled outflow and ensure fair competition for German recycling companies. Without swift and decisive action from the EU, the circular economy structures built over the years will be destroyed, and companies will be forced out of the market."
"Companies are already feeling the pinch. If we don't act immediately, the scrap shortage will worsen dramatically. This not only jeopardises the expansion of the circular economy but also undermines Europe's decarbonisation goals and raw material security."
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