Primary and secondary aluminum: scrap recycling and challenges for Europe
Europe currently requires approximately eight million tons of primary aluminum per year, out of a total raw metal use—including recycled material—of just over 13.5 million tons. This is a significant issue, as in recent years the EU has lost 65% of its domestic primary aluminum production capacity, which has fallen to approximately 950,000 tons per year.
It is true that aluminum scrap recovery and recycling rates are growing significantly, but even maximizing the recovery of end-of-life scrap—the most difficult fraction to collect—would only meet about 60% of global demand for the light metal, which is estimated to grow by 40-50% overall by 2050.
Aluminum trading mechanisms in the EU have always been a highly sensitive issue. The decades-long debate over the permanence of EU import duties on raw metal remains an open question. This outdated tariff policy has been repeatedly called to the attention of Brussels policymakers as an example of a choice that runs counter to the real needs of the market. This is now joined by the urgently needed complementary issue of protecting the secondary raw material, namely aluminum scrap.
The Role of Secondary Aluminum and the Protection of European Scrap
These issues were recently discussed at a meeting at the European Commission's DG Trade in Brussels, attended by Maurizio Sala, Vice President of Amafond and FACE, the Federation of Aluminium Consumers in Europe.
"I believe the meeting in Brussels was an important opportunity for discussion and a demonstration of the strength of the European aluminum industry, represented by several industry associations in the segment. We were there to discuss the only source of aluminum raw material, yet secondary in origin, that we have in Europe—light metal scrap—and to monitor its exit from the old continent to various areas, a real drain on resources that has increased in intensity in recent years."
Secondary aluminum actually represents a great asset and opportunity. Its reuse requires only 5% of the energy needed for primary aluminum production and does not pose significant environmental burdens. What we need to do is collect the scrap, recover it, and restore it, using increasingly effective and innovative technologies, to become the basis for applications such as raw materials and alloys. Therefore, we're not talking about "scrap" in a limited sense, but rather about a material already used in various forms and applications, which must be restored to its original metallurgical qualities after use: a valuable commodity that must be maintained in the industrial circuit into which it was introduced. This is why rapid and appropriate tariff measures are now essential to keep the export of valuable aluminum scrap under control.
Non-European Scrap Competition and Brussels' Attention
The industrial system for recovering and recycling aluminum scrap in Europe is considered to be highly efficient overall, with several hundred refiners and remelters, primarily in Germany, Italy, France, the United Kingdom, Poland, Spain, and Austria. However, strong competition from several non-European countries—the most aggressive being China, India, Pakistan, Korea, Hong Kong, and Taiwan, which account for approximately 70% of EU scrap importers—is a serious concern, especially considering Europe's heavy reliance on imports of unwrought primary aluminum.
Regarding the institutional response, Sala expressed a positive assessment of the meeting: "From a technical standpoint, the Commission showed great interest, primarily in delving into greater detail, beyond the obvious economic and industrial implications of the problem. Attention was given to basic technical issues, such as identifying and accurately distinguishing between different types of scrap, from low-quality to more refined materials such as profiles and sheets."
Many other issues weighing on the industry remain on the table: the ETS, CBAM, energy costs among the highest in the world, and the additional tariff cost on primary energy, which accounts for approximately 85% of its needs.
Sala concludes: "I believe that attention and investment in aluminum recovery and recycling are necessary and a priority, and I have the impression that the decision-makers in Brussels have well-received our observations. Our message was that by exporting aluminum scrap, we are not just giving away metal, but energy and a raw material that we do not have as much as we need; all of this within the context of a European aluminum system that has a history, culture, experience, and knowledge behind it. Investments in aluminum recovery and recycling will be an opportunity worth monitoring with great attention."
Source: A&L Aluminium Alloys Pressure Diecasting Foundry Techniques