BIR submits concerns about aluminum trade restrictions

The Brussels-based Bureau of International Recycling (BIR) has submitted comments to the European Commission regarding the potential introduction of trade measures designed to restrict flows of aluminum scrap beyond the European Union.

“This submission makes it clear that while our industry fully supports the EU’s circular economy and decarbonization goals, the imposition of export restrictions or trade barriers is fundamentally unnecessary and risks producing significant unintended consequences for the entire value chain,” states BIR.

The organization’s comments have been posted to the EC website along with other matters pertaining to the “EU aluminum sector – trade measures to ensure sufficient availability of aluminum scrap on the EU market” policy.

Continues BIR, “Our response highlights that the commission’s own monitoring data fails to demonstrate any structural ‘scrap leakage.’ Instead, the current export volumes reflect a well-functioning market where the EU generates more aluminum scrap than domestic smelters can technically or economically absorb.”

The organization says it has alerted the commission that restricting trade flows would not increase domestic availability but instead would “distort markets and depress recycled metal prices to the point where the economic viability of recycling operations is threatened.”

Reduced recycling company profits, adds BIR, “would inevitably weaken collection incentives and discourage the very investment needed to meet EU recycling targets.”

In its submitted comments, BIR says it has “underscored the danger of turning what is currently a valuable resource into a financial burden, which increases the likelihood of abandoned or unmanaged waste streams.”

Continues the organization, “The solution lies in evidence-based policymaking that focuses on positive alternatives, such as improving energy affordability, harmonizing regulations and incentivizing the uptake of recycled content.”

Concludes BIR, “Should the commission proceed with interventions despite these concerns, BIR insists that any measures must be strictly temporary, narrowly targeted and governed by robust emergency clauses to protect the employment and investment levels of our members.”