Mytilineos: Europe is facing a silent crisis – Proposes restrictions on aluminum scrap exports

Mr. Evangelos Mytilineos, President and CEO of Metlen Energy & Metals, warns of a “silent crisis” in Europe as large quantities of aluminum scrap are departing the continent, primarily destined for the United States.

In a LinkedIn post, Mr. Mytilineos voiced his concerns following a related opinion piece from Reuters:

“Europe faces a silent crisis: aluminum scrap, the key raw material for recycling, is leaving the continent at unprecedented rates.

With the U.S. doubling tariffs on primary aluminum, demand for European scrap is surging, jeopardizing the viability of our recycling facilities and increasing our reliance on external sources.

This situation is not sustainable. Aluminum scrap is not waste; it holds significant value and energy as a strategic raw material.

The mass export of scrap undermines our climate objectives, energy independence, and the foundations of Europe’s clean technology and defense sectors.

I fully endorse implementing restrictions on aluminum scrap exports. This isn’t protectionism; it’s about ensuring consistency, resilience, and safeguarding Europe’s future.

We need to stop relinquishing our competitive advantage and begin defending it.”

The Reuters article emphasizes that the “scrap battle” is just beginning and discusses the implications of U.S. President Donald Trump‘s decision to double aluminum tariffs, which raises the threat of a full-blown trade conflict with the European Union in the recycling sector.

While the tariffs are broad in application, aluminum scrap is notably excluded since it is viewed as essential for U.S. manufacturing.

The tariff increase to 25% as of March 1 had already heightened U.S. imports of recyclable aluminum, and the recent decision to raise tariffs to 50% could lead to a dramatic influx of imports.

As noted in the article, the European Union is under increasing pressure to take swift action to address the outflow of raw materials, including potentially introducing export duties on aluminum scrap.

In March, U.S. imports of recycled aluminum surged to 80,000 tons, marking the highest monthly total since 2022.

According to European Aluminium, the industry association, tariff disparities have already begun to draw materials from Europe. EU exports to the U.S. increased sharply in Q1 and are anticipated to escalate as the price gap widens.