The EU suddenly dropped the proposed 15% export tax on aluminum scrap, with one of the main reasons being concerns that this measure would affect the upcoming free trade agreement with India.
The European Commission originally planned to announce a three-year 15% export tax on aluminum scrap on September 23rd, which was lower than the 30% demanded by the European aluminum industry.
This policy aimed to curb the large-scale export of scrap aluminum and ensure that European smelting and recycled aluminum industries had sufficient raw materials, while serving the EU's circular economy and sustainable development goals. However, it was eventually shelved due to internal disagreements and pressure from India.
India is one of the largest overseas buyers of European aluminum scrap, accounting for approximately one-third of EU scrap aluminum exports. The Indian government had previously requested that Brussels relax relevant restrictions, and EU Commission President Frans Timmermans is expected to sign a trade agreement with Indian Prime Minister Modi in December.
Sources believe that the EU's trade department ultimately pushed to exclude India from the original plan, significantly weakening the protection effect of the export tax on European industries. The original draft listed 91 eligible countries and regions, including India.
European aluminum industry is highly dissatisfied with this. In recent years, European smelters have been facing high energy costs, strict environmental regulations, and pressure from Asian competitors, and the rising price of scrap aluminum has further squeezed profits.
Since 2019, EU aluminum scrap exports have increased by 51%, reaching a record 12.6 million tons in 2025. Some non-EU buyers, due to subsidies and trade distortions, pay prices up to 26% higher than domestic EU prices, leading to the continuous outflow of European recycled aluminum raw materials.
Industry experts believe that if there are no export restrictions, more recycling and smelting facilities may close, further weakening the European industrial base.
The EU currently plans to rely on the "Waste Transportation Regulations" to achieve similar goals. It is expected that from May 2027, the EU will prohibit the export of non-hazardous waste to non-OECD countries, but some countries can apply for exemptions.
India, Thailand, and Malaysia currently fail to meet the environmental protection conditions required for metal scrap exemptions. In the future, they may not be able to directly import scrap aluminum from the EU. However, the European aluminum industry believes that this mechanism has risks and is difficult to fully replace trade measures.
This policy shift shows that the EU is struggling to balance industrial protection, green transformation, and its trade relationship with India. The European aluminum industry may still push for scrap aluminum export restrictions in the future.
