Constellium may drop EU metal recycling plans due to scrap squeeze, CEO says
Aluminium products maker Constellium may drop plans to expand recycling in the European Union unless policymakers resolve a scrap shortfall linked to used metal being exported overseas, its CEO said on Tuesday.
The European Commission angered industry representatives this month by abandoning plans to impose an export duty on aluminium scrap, which the industry says is crucial to keeping more of the low-cost raw material in Europe. The EU’s executive is now proposing to curb scrap outflows through waste shipment rules.
Constellium, like other producers in Europe, is sceptical about the waste approach given a large number of non-OECD countries seeking exemptions, CEO Ingrid Joerg told Reuters.
“We have several recycling projects in the pipeline that we are investigating. But if there’s no scrap, they’re not going to happen,” she said.
The projects covered Constellium’s different market segments, such as packaging, auto and aerospace, and could be larger or smaller than a previous €130 million ($148.82 million) recycling expansion at its Neuf-Brisach plant in France, she said, declining further details.
Constellium recycles some of its production in a closed loop but also relies on external scrap.
The loss of scrap to exports is among grievances of an EU aluminium sector also grappling with the bloc’s carbon border-tax scheme and soaring energy prices.
Constellium welcomed changes to the carbon border levy voted by the European Parliament last week, but final adoption was needed swiftly to close loopholes, Joerg said.
The border levy is expected to push up European aluminium premiums, adding to global inflation pressures linked to energy costs, tariffs and Mideast disruption, she said.
Constellium’s US operations were benefiting overall from tariffs, with a high recycling rate and US retention of scrap offsetting the impact of tariffs on Canadian aluminium, she added.
($1 = 0.8735 euros)
(Reporting by Gus Trompiz; Additional reporting by Kate Abnett; Editing by Susan Fenton)
EU waste proposal would ban India from importing bloc’s metal scrap
India will be among the countries barred from importing EU metal waste, including aluminium scrap, under a new law due to take effect in May 2027, according to a European Commission proposal setting out exemptions for non-OECD countries.
The Commission published the proposal on Friday, confirming an earlier Reuters report, and opened a public consultation on the exemptions list until October 16.
The move comes after the Commission earlier this month ditched a plan to impose a 15% export duty on aluminium scrap following pressure from the biggest buyer — India. Disagreements among EU officials diluted the trade proposal by exempting India, significantly reducing its impact.
The Commission has argued that the same objective can be achieved through the bloc’s waste shipment rules rather than trade measures.
Industry group European Aluminium remains unconvinced, however, having viewed the proposed export duty as crucial to keeping more of the low-cost raw material within Europe for struggling smelters.
The Waste Shipment Regulation will take effect in May 2027. The Commission said 32 non-OECD countries applied for exemptions covering non-hazardous waste categories including paper, plastics, rubber, metal and glass. Exemptions are granted only if applicants can demonstrate the waste will be treated in an “environmentally sound manner”.
Metal waste faces stricter scrutiny because it presents a “higher hazard profile … due to the potential presence of persistent and toxic heavy metals,” the Commission said.
The EU executive added that the exemptions list, known as a delegated act, will be updated regularly, at least every two years, and countries will be able to reapply.
(Reporting by Julia Payne. Editing by Mark Potter)
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