New US Tariffs Could Significantly Impact European Aluminium Scrap Exports

Aluminium Scrap

European aluminium recycling faces challenges as US tariffs on scrap imports rise.

The recent announcement of new tariffs by the United States government, particularly on aluminium scrap from Europe, is sending ripples through the European aluminium recycling industry. The sweeping tariff adjustments, which were introduced by US President Donald Trump on April 2, threaten to significantly reduce the flow of European aluminium scrap to the US. With these new measures, aluminium scrap will face a substantial tariff, making it less attractive for US buyers.

Impact of New Tariffs on Aluminium Scrap Exports

The new tariffs, set to take effect on April 9, place aluminium scrap imports from Europe under a 20% tariff, while imports from the UK will face a slightly lower 10% tariff. This comes after the previously established 25% tariff on primary aluminium imports from Europe, which was put in place last month. As a result, the cost of importing aluminium scrap from Europe will be nearly as high as that for importing primary aluminium, significantly altering the economics of aluminium recycling.

Historically, the US had been a major buyer of European aluminium scrap, with many industries using recycled aluminium as an alternative to primary aluminium. The new tariffs, however, will likely make scrap imports much less appealing to US buyers, pushing them to explore other options. This comes after previous expectations that the US would turn to aluminium scrap as a more affordable alternative to primary aluminium, which is now burdened by hefty tariffs.

Reactions from Industry Associations

Industry associations such as European Aluminium and Aluminium Deutschland have voiced concerns over the new tariffs, as they undermine the viability of aluminium scrap exports. These associations had earlier called for export restrictions on scrap due to fears that large-scale shipments of aluminium scrap could exacerbate market imbalances. With the tariffs in place, the likelihood of scrap exports to the US is expected to diminish significantly.

European Aluminium has indicated that it is closely monitoring the situation to determine its next steps regarding export restrictions. Aluminium Deutschland, however, has yet to comment on the matter.

What This Means for the Aluminium Recycling Industry

These new tariffs could lead to a shift in the global aluminium market. If European aluminium scrap becomes less competitive due to high tariffs, it may force US buyers to seek out other sources of aluminium scrap, possibly from domestic markets or alternative suppliers. Additionally, this could put pressure on European recyclers, who may face reduced demand for their products, forcing them to explore new markets or adjust their pricing strategies.

As the situation evolves, the aluminium recycling industry in Europe will need to adapt to these new challenges, either by lobbying for changes in tariff policies or by finding ways to remain competitive in an increasingly restricted global market.

European Aluminium Renews Call for Aluminium Scrap Export Restrictions

European Aluminium Scrap

US Tariff Hike Intensifies Scrap Supply Pressures in Europe

European Aluminium has renewed its push for export restrictions on aluminium scrap following US president Donald Trump’s decision to double tariffs on EU steel and aluminium imports to 50%. The association warns that the move could accelerate scrap outflows to the US, worsening an already tight supply situation in Europe.

The industry group first raised the proposal in 2018 when the US imposed a 25% tariff on all steel and aluminium imports. Scrap aluminium was excluded from the sanctions, making it an attractive alternative for US buyers seeking to avoid higher costs on primary aluminium. With the latest tariff hike, European Aluminium says the outflow has intensified, threatening domestic recycling and semi-fabrication operations.

Rising Global Demand for Aluminium Scrap Fuels Competition

Strong demand from buyers in India and other Asian markets has already strained European scrap supply. These buyers offer higher prices, benefiting from lower labour and energy costs and weaker environmental regulations. Additionally, primary aluminium producers in Europe are increasingly using higher-grade scrap to meet automotive customers’ sustainability goals.

European Aluminium reported that scrap exports to the US surged 273% year-on-year in the first quarter of 2025, already accounting for two-thirds of total exports in 2024. Without swift EU intervention, the association warns that the situation could escalate into a “full-blown scrap crisis,” jeopardizing the viability of Europe’s aluminium recycling and semi-fabrication industry.

The Metalnomist Commentary

The surge in US demand for European aluminium scrap highlights the vulnerability of supply chains to trade policy shifts. For the EU, balancing open trade with the need to safeguard strategic raw materials will be critical. Without targeted restrictions or incentives to retain scrap domestically, Europe risks undermining its own circular economy and low-carbon manufacturing goals.

European Aluminium Renews Call for Aluminium Scrap Export Restrictions

European Aluminium Scrap

Push for Export Fees to Protect Recycling Industry

European Aluminium has issued its third call this year for restrictions on aluminium scrap exports from the EU. The industry body urged policymakers to impose export fees, arguing that such measures would help secure more scrap for European recycling facilities. According to the association, stronger controls could stimulate investment, boost remelting capacity, and close the loop within Europe under strict environmental and social standards.

Impact of Scrap Shortages on EU Producers

The push comes as secondary aluminium alloy producers struggle with squeezed profit margins, driven by high scrap costs and rising European energy and labor expenses. Scrap availability has tightened as generation slowed in automotive, construction, and manufacturing sectors, while exporters in India and Asia raised purchase prices. European Aluminium reported that around 15pc of recycling furnace capacity is currently idled due to insufficient scrap supply, warning that unchecked exports risk undermining the bloc’s sustainability goals.

The Metalnomist Commentary

The repeated call from European Aluminium highlights the tension between global scrap demand and Europe’s recycling ambitions. Export restrictions could secure domestic feedstock, but they may also trigger retaliatory measures and complicate global trade. The EU must balance industrial resilience with open-market principles if it aims to lead in the circular economy transition.

European Aluminium Industry Pushes for Scrap Export Restrictions

Al scrap

Rising Pressure for Scrap Export Controls

The European aluminium scrap market is facing mounting pressure as supply tightness collides with strong export demand. Industry groups such as European Aluminium and Aluminium Deutschland have intensified lobbying for export tariffs to secure domestic scrap supply. Their push comes as the US raises tariffs on primary aluminium imports, potentially boosting American demand for European scrap.

Exports of European aluminium scrap surged in recent years, particularly to Asia. The EU and UK together shipped 1.57mn tonnes in 2024, a 23pc increase compared with 2022. India and China accounted for the bulk of these flows, while exports to the US, though smaller, grew sharply. European Aluminium warned that rising US interest, combined with current supply shortages, risks creating a “full-blown scrap crisis.”

Industry Debate and Market Risks

However, not all stakeholders agree that restrictions are the solution. Scrap merchants argue that supply shortfalls are driven more by weak industrial activity than by exports. Low production in automotive, construction, and machinery has reduced available grades like aluminium turnings, which are essential for European secondary smelters. They caution that tariffs may not address these structural issues and could trigger reciprocal trade barriers, complicating Europe’s own scrap imports.

At the same time, many producers identify high energy costs as the bigger threat to smelter viability. Merchants note that no smelter closures have been directly tied to scrap shortages, while escalating electricity prices have forced cutbacks. Despite this, calls for restrictions continue to gain traction, reflecting a broader trend of resource nationalism as countries prioritize domestic recycling over exports.

The Metalnomist Commentary

The debate over aluminium scrap export restrictions underscores a critical tension between free trade and industrial security. While tariffs may stabilize domestic availability, they risk distorting markets and inviting retaliation. The EU must weigh these risks carefully, especially as global competition for low-carbon feedstock intensifies. Energy costs, more than scrap scarcity, remain the sector’s existential challenge.

European Aluminium Calls for EU Scrap Export Limits

European Aluminium Scrap

Aluminium industry group urges EU action to protect regional scrap supply amid rising export demand and U.S. tariff pressure

Rising Exports and U.S. Tariffs Put Pressure on EU Scrap Supply

European Aluminium has urged the EU to implement export limits on aluminium scrap. This follows increased competition from Asian markets and new U.S. trade measures. In 2024, the EU exported 1.5mn tonnes of aluminium scrap, with over 500,000t going to India alone. Meanwhile, U.S. buyers are now expected to shift toward scrap after Washington imposed a 25% tariff on primary aluminium.

Industry Pushes for Regulation Through the WSR and Circular Economy Act

The association proposed using export fees and tightening the Waste Shipment Regulation (WSR). This 2023 revision now includes scrap metal, offering a legal pathway for restrictions. European Aluminium also called for a new Circular Economy Act to ensure long-term scrap availability and quality. Furthermore, it recommends a dedicated emissions benchmark for recyclers.

Scrap Now Central to Primary Production and Green Goals

Sustainability targets have pushed primary aluminium producers to use more scrap. Improved technologies also enable the use of lower-grade material. As a result, competition for European scrap has intensified. German trade body Aluminium Deutschland previously appealed to its government for similar EU-wide restrictions.

The Metalnomist Commentary

Aluminium scrap is no longer a marginal byproduct—it’s become a strategic resource. With decarbonization and tariffs converging, Europe faces a policy choice: export profits or internal supply security. The latest moves by industry groups show momentum for regulatory intervention.

Blanket US Aluminium Tariffs to Have Limited Impact on European Trade Flows

US Aluminium

Trump's 25% Tariff on All Aluminium Imports Will Affect US Consumers, Not European Markets

US President Donald Trump’s announcement of a blanket 25% tariff on all aluminium imports is expected to have minimal impact on European trade flows. This contrasts with earlier plans to impose tariffs specifically on imports from Canada and Mexico. According to market participants, the new approach is unlikely to disrupt European markets as much as the previous strategy might have.

Impact of Blanket Tariffs on Aluminium Trade

Trump’s new tariffs, which will apply to all aluminium imports, are set to be announced soon. This blanket tariff on steel and aluminium is expected to affect all exporting countries without distinguishing between suppliers. Canada, the UAE, and Argentina were the leading exporters of unwrought aluminium to the US last year, but the tariffs will now apply to everyone, making it difficult for countries like Canada to redirect excess supplies to Europe as initially anticipated.

Under the previous plan, markets predicted a shift in trade flows, with more Canadian aluminium potentially moving to Europe. This was expected to reduce European premiums due to an increase in supply, as demand in Europe remained weak. However, under the new tariff strategy, this shift is likely to be less pronounced. The global competitiveness of Canadian aluminium is diminished when tariffs apply universally, making aluminium from other regions, such as the Middle East and South America, less attractive in the US market.

Consequences for US Consumers and Domestic Production

The main consequence of these blanket tariffs will be higher costs for US consumers. While the tariffs could potentially drive up domestic production, increasing capacity will take years. In the meantime, US buyers will face higher prices for aluminium imports, particularly from Canada, as shipping times from these suppliers are shorter than those from more distant countries.

Market analysts believe that, despite the tariffs, US consumers will continue to import from Canada because of these logistical advantages. The blanket tariff strategy is unlikely to redirect a significant volume of Canadian aluminium to Europe, meaning the overall impact on European aluminium flows will be minimal.

Conclusion: A Shift in Costs, Not Trade Flows

In conclusion, Trump’s blanket tariffs on aluminium imports are expected to result in higher costs for US consumers but will have limited consequences for European trade flows. The market will likely experience some adjustments, but European aluminium premiums are not expected to drop significantly as a result of these changes.

European Aluminium Calls for Unified CO2 Calculation Standards

European Aluminium

Industry Push for Harmonised Emissions Methodology

European Aluminium has urged the EU to establish a universal methodology for calculating carbon emissions across aluminium value chains. The industry body warned that fragmented national approaches create compliance burdens and hinder the EU’s decarbonisation targets. Member states are currently using varied methods that include renewable energy credits, recycled inputs, and innovative processes, but lack of alignment reduces comparability and efficiency.

The association addressed its concerns directly to European Commission leaders, stressing that inconsistent emissions reporting undermines transparency. It highlighted the need for alignment to support the EU’s broader climate strategy, particularly as aluminium plays a critical role in low-carbon industries such as automotive, construction, and packaging.

Regulatory Landscape and Policy Recommendations

European Aluminium pointed to ongoing regulatory frameworks such as the Corporate Sustainability Reporting Directive (CSRD) and Life Cycle Assessment (LCA) standards for EV batteries. These regulations demonstrate momentum toward emissions accountability but also expose gaps caused by inconsistent calculation methods.

The group expressed support for the European Commission’s Clean Industrial Deal (CID), which aims to streamline reporting across EU institutions. However, it warned that achieving a single emissions calculation framework might require adjusting legislative deadlines to allow industry and regulators sufficient time for harmonisation.

The Metalnomist Commentary

A harmonised carbon calculation system would significantly reduce compliance costs for aluminium producers and ensure fair competition across the EU market. Without it, fragmented rules risk weakening Europe’s industrial base at a time when decarbonisation and strategic autonomy are top priorities. The call from European Aluminium underscores the urgency for the EU to deliver clarity and consistency.

Hydro European Extrusion Plant Closures Signal Deeper Pressure in Aluminium Demand

Hydro

Hydro European extrusion plant closures are expanding as the Norwegian aluminium producer adds the Luce plant in France to its restructuring plan. The move brings the number of European extrusion plants targeted for closure in 2026 to six, reflecting continued weakness in regional aluminium demand.

Hydro previously announced plans to close extrusion plants in Cheltenham and Bedwas in the UK, Ludenscheid in Germany, Feltre in Italy, and Drunen in the Netherlands. The two UK closures have been confirmed and are scheduled for the second quarter.

Hydro European extrusion plant closures show that aluminium processors are still adapting to weak construction, automotive, and industrial demand across Europe. The company also closed its Birtley extrusion plant in the UK in May, underlining the scale of its capacity adjustment.

European Aluminium Extrusion Market Remains Under Pressure

The European aluminium extrusion market continues to face difficult operating conditions. Weak demand, high costs, and margin pressure are forcing producers to reassess plant networks and remove capacity from less competitive sites.

Hydro said the European market remains challenging and that further action is needed. The planned Luce closure fits into a broader effort to align capacity with demand while maintaining service levels in key markets such as France.

If all planned closures are completed, Hydro will retain 27 extrusion plants and five recycling facilities in its European extrusion business. This suggests the company is not exiting Europe, but reshaping its footprint around fewer, more competitive assets.

Luce Closure Adds Cost but Supports Long-Term Restructuring

Hydro estimates total restructuring costs related to the Luce closure at Nkr260mn, or about $27.2mn. Around Nkr5mn will affect the company’s adjusted earnings in the first quarter.

The near-term cost is part of a wider restructuring logic. Aluminium extrusion producers need scale, utilization, efficient logistics, and competitive energy and labour cost structures to protect margins in a weak market.

Hydro European extrusion plant closures also highlight a broader issue for Europe’s downstream aluminium sector. Demand recovery remains uncertain, while producers must continue investing in recycling, low-carbon aluminium, and higher-value applications to remain competitive.

The Metalnomist Commentary

Hydro’s restructuring shows that Europe’s aluminium challenge is moving downstream, not staying limited to smelting. The winners will be producers that can combine leaner capacity, recycling integration, and higher-value customer segments before demand fully recovers.

Kety Aluminium Extrusion Volumes Rise as Feedstock Volatility Clouds Outlook

Kety Aluminium

Kety aluminium extrusion volumes rose in the first quarter as the Polish aluminium extruder benefited from stronger sales, high plant utilisation and improved margins. Grupa Kety sold 27,200t of extruded products in January-March, up 7% from a year earlier.

Kety aluminium extrusion volumes were supported by 85% capacity utilisation at the company’s extrusion plant. The result showed solid demand for extruded products despite rising aluminium prices and growing uncertainty across European supply chains.

Kety aluminium extrusion volumes also helped lift profitability. Net profit rose by 20% on the year to 145mn zlotys, supported by stronger margins across its business divisions, including extruded products and aluminium construction systems.

However, the company is cautious about the rest of 2026. The US-Israel and Iran war has driven aluminium prices, billet premiums and petrochemical feedstock costs higher, creating longer-term margin and demand risks.

Rising Billet Premiums Support Short-Term Margins

Kety has benefited in the short term from rising feedstock prices. The company was able to pass higher aluminium costs to customers while processing material from its own inventories.

This timing supported margins in the first quarter. Aluminium prices on the London Metal Exchange have risen by around 15% since the start of the Middle East war, while European aluminium billet premiums have more than doubled.

For an extruder holding inventory, a rising feedstock market can create temporary earnings support. Material purchased earlier at lower prices can be processed and sold into a higher-price environment.

Kety expects its extrusion plant utilisation to remain strong in the second quarter. This suggests that order flows have not yet weakened sharply despite higher input costs.

However, the benefit is unlikely to last indefinitely. If aluminium prices and billet premiums remain elevated, customers may resist further increases or delay orders.

This is the key risk for European extruders. Higher input prices can lift revenues in the short term, but they can also weaken downstream demand if construction, transport, industrial and consumer goods customers face margin pressure.

Feedstock Security and Cost Inflation Shape 2026 Risk

Kety said its feedstock supplies have been only slightly affected since the start of the Iran war. The company needed to diversify sources for small quantities, but it has not reported major supply disruption.

The company maintains around four to six weeks of feedstock needs in inventory. It also contracts new supplies within a two-month horizon, giving it some flexibility but not full insulation from market volatility.

Kety produces about half of the billet it needs for its extrusion operations. Its own scrap accounts for about 75% of the feedstock used in billet production.

This partial integration gives Kety a useful buffer. Internal billet production and scrap use reduce dependence on external billet markets, where premiums have surged.

Still, the company warned that continued increases in aluminium prices, billet premiums and petrochemical feedstock costs could weigh on performance later in 2026.

Chief executive Roman Przybylski said a short-term aluminium price surge may help earnings, but longer-term increases are worrying. He warned that higher costs could contribute to prolonged stagflation when governments have limited room to stimulate markets after heavy Covid-19 spending.

For European aluminium processors, the issue is becoming structural. Supply disruption, higher energy-linked costs, billet premium inflation and weaker macroeconomic conditions can all squeeze margins at the same time.

Kety’s first-quarter performance was strong, but its outlook shows how quickly favourable inventory timing can turn into cost pressure if feedstock inflation persists.

The Metalnomist Commentary

Kety’s results show how aluminium processors can benefit briefly from rising feedstock prices when inventories are well managed. The strategic risk is that sustained billet premium inflation could weaken downstream demand and turn short-term margin support into a longer-term volume problem.

Amag Aluminium Earnings Fall as Tariffs and Weak Automotive Demand Pressure Margins

Amag Aluminium

Amag aluminium earnings fell in 2025 as weaker shipments, US trade tariffs, and soft European automotive demand weighed on performance. The Austrian downstream aluminium producer reported a 23.5pc decline in Ebitda to €137mn, despite a modest increase in revenue.

Revenues rose by 2.1pc to €1.48bn, supported by higher London Metal Exchange aluminium prices. However, total shipments fell by 1.7pc to 417,600t, while external shipments declined by 2pc to 382,000t. This shows that higher metal prices helped protect sales value but did not offset the pressure on operating earnings.

Amag aluminium earnings also faced headwinds from lower premiums, a stronger euro-dollar exchange rate, and tariff effects across the company’s divisions. The result highlights the difficult position of European downstream aluminium producers, which must manage weak regional demand, high costs, and uncertain trade conditions.

Automotive Weakness Hits Casting and Rolling Performance

Amag’s casting division improved productivity but continued to face weak demand from the European automotive industry. US trade tariffs also affected performance, adding another layer of pressure to already fragile customer demand.

The rolling division faced similar challenges in automotive applications. Sales weakened in the automotive sector, although industrial applications and packaging showed stronger demand. This mixed performance reflects a broader split in downstream aluminium markets, where packaging and industrial uses remain more resilient than vehicle-related consumption.

High energy and personnel costs at Amag’s Ranshofen site further compressed margins. This is a major structural issue for European aluminium processors, especially as competition from lower-cost regions remains intense and customers continue to push for cost control.

Higher Aluminium Prices Limit the Earnings Decline

Higher LME aluminium prices helped limit the fall in Amag aluminium earnings. Average LME aluminium prices were 7.4pc higher than in 2024, supporting revenue even as shipment volumes declined.

However, lower premiums reduced the benefit of stronger aluminium prices, particularly in the metal division. The division also faced weaker shipments and exchange-rate pressure, showing that price gains alone cannot fully protect margins when premiums, volumes, and currency conditions move against producers.

Amag declined to provide an earnings forecast for 2026 because market conditions remain challenging. Still, the company pointed to some positive signs from economic forecasts, sentiment, customs arrangements, and order intake. Overall aluminium demand is expected to rise, but rolled aluminium demand in Europe is likely to remain weak.

The Metalnomist Commentary

Amag’s results show that European downstream aluminium remains caught between price support and weak industrial demand. The key risk is that tariffs and high operating costs continue to erode competitiveness even if broader aluminium consumption improves.

EU aluminium scrap export restriction moves toward spring 2026 adoption

EU aluminium scrap

The European Commission launched work on an EU aluminium scrap export restriction to curb “scrap leakage.” Maroš Šefčovič said the measure should arrive in spring 2026. The EU aluminium scrap export restriction aims to secure feedstock for recyclers and downstream producers.

European industry groups have pushed for action for years. However, the pressure intensified after Donald Trump imposed tariffs on primary aluminium imports. Many buyers may shift toward more scrap to reduce duty exposure. Therefore, European exporters could see stronger pull from overseas markets.

Aluminium scrap flows already show the scale of the challenge. The European Union and the United Kingdom exported around 1.6mn tonnes of aluminium scrap in 2024. That volume rose almost 25% versus 2022 and about 60% versus 2019. As a result, policymakers now frame scrap retention as an economic security issue.

Export tariffs or quotas look more likely than a ban

The final instrument is not yet defined. Officials and industry leaders say a full ban is unlikely. However, export tariffs or quotas could deliver immediate friction on outbound scrap.

Industry executives welcomed the signal from Brussels. Hydro extrusions head Paul Warton called the move encouraging. Meanwhile, European Aluminium director-general Paul Voss described current outflows as a market failure. Therefore, the consultation phase will test where the market sees real bottlenecks.

The commission will run a public consultation and gather evidence. That process will shape how any tariffs or quotas apply. Meanwhile, Aluminium Deutschland has also argued for tools that keep scrap in Europe. As a result, the EU aluminium scrap export restriction will likely focus on volumes and verification.

Scrap retention supports low-carbon aluminium and industrial resilience

Scrap retention directly supports lower-carbon aluminium production. Recyclers typically cut energy use versus primary routes, depending on power mix. Therefore, stable scrap supply improves decarbonisation pathways for European manufacturers.

Trade measures could also reshape pricing and contracts. Scrap exporters may face lower netbacks, while domestic buyers may gain supply security. However, overly strict rules could disrupt collection incentives and cross-border trade. As a result, policymakers must balance supply security with healthy recycling economics.

The Metalnomist Commentary

Europe will not decarbonise aluminium without reliable scrap access at scale. Meanwhile, tariffs and quotas must avoid weakening collection and sorting investment. Therefore, the best design links any restriction to reinvestment in recycling capacity.

Amag Aluminium Loan Strengthens Europe’s Push for Advanced Aluminium Manufacturing

Amag Aluminium

Amag aluminium loan financing from the European Investment Bank will support new research, digitalisation, and sustainable manufacturing in Austria’s downstream aluminium sector. The €75mn loan gives Amag fresh capital to develop higher-value aluminium products while improving the environmental performance of its Upper Austria production base.

The financing marks the first EIB loan in Austria under the TechEU programme. That matters because the programme is designed to accelerate European innovation in strategic industries. For aluminium, this support comes as Europe seeks more resilient supply chains for materials used in transport, packaging, energy infrastructure, and net-zero technologies.

Amag plans to use the loan as part of a wider research investment programme expected to reach €168mn between 2025 and 2028. The Amag aluminium loan therefore supports more than one company’s balance sheet. It also reflects Europe’s effort to protect industrial capability in a sector exposed to energy costs, import competition, and decarbonisation pressure.

EIB Financing Supports Aluminium R&D and Digitalisation

The EIB financing will help Amag develop advanced aluminium products and modernise manufacturing processes. This is important because downstream aluminium producers increasingly compete on alloy performance, process efficiency, traceability, and carbon footprint rather than volume alone.

Digitalisation will likely play a central role in that competitiveness. Aluminium rolling, casting, recycling, and finishing operations depend on tight process control. Better data systems can improve yield, reduce waste, and support more consistent product quality for demanding customers in automotive, aerospace, industrial, and energy transition markets.

The Amag aluminium loan also highlights how public financing is becoming more closely tied to industrial technology. Europe is trying to support companies that can upgrade manufacturing while meeting stricter sustainability requirements. For aluminium producers, that means combining product innovation with lower-emission operations.

Critical Raw Materials Policy Raises Aluminium’s Strategic Role

The loan also aligns with the European Critical Raw Materials Act. Although aluminium is widely traded, Europe increasingly treats it as a strategic material because it underpins net-zero technologies, lightweight transport, power infrastructure, and manufacturing resilience.

This policy connection is significant for downstream producers. Europe does not only need raw metal supply. It also needs domestic capacity to convert aluminium into advanced products that meet industrial and environmental standards. Companies such as Amag sit in that critical middle layer between raw material supply and finished manufacturing.

The EIB’s support therefore strengthens Europe’s aluminium value chain at a time when industrial policy is becoming more active. As global competition intensifies, financing for research and sustainable production can help European producers defend higher-value market positions and reduce dependence on imported materials and technologies.

The Metalnomist Commentary

The Amag aluminium loan shows how Europe is using finance as an industrial policy tool. The bigger message is clear: aluminium competitiveness will depend on innovation, low-carbon production, and control over strategic manufacturing capacity.

Metlen Aluminium Production Fell in 2025 as Power Costs Hit Metals Profits

Metlen

Metlen aluminium production declined in 2025 as higher European electricity costs squeezed margins across the Greek group’s metals business. The company produced 232,000t of aluminium during the year, down 2% from 2024.

Primary aluminium output fell by 4% to 176,000t, outweighing a 2% increase in recycled aluminium production to 57,000t. Alumina output also slipped by 1% to 855,000t.

Metlen aluminium production weakness shows how European smelters remain exposed to energy costs even when aluminium prices are firmer. Higher power prices reduced operating profits and weakened the earnings contribution from the metals segment.

Aluminium Revenue Rose but EBITDA Fell Sharply

Metlen’s metals revenue increased in 2025, but profitability fell because margins weakened. Aluminium revenue rose by 4% to €646mn, while EBITDA from aluminium dropped by 40% to €127mn.

Alumina showed a similar pattern. Revenue from alumina production increased by 4% to €206mn, but product-linked EBITDA fell by 9% to €79mn.

The result highlights the margin pressure facing European aluminium producers. Stronger aluminium prices, supported by trade tensions and US import tariffs, were not enough to offset higher electricity costs across the region.

Metlen’s metals unit contributed 13% of group revenue. However, weaker metals earnings weighed on the company’s broader industrial performance.

Gallium Project Adds Strategic Value Beyond Aluminium

Metlen’s group EBITDA fell by 30% to €753mn in 2025, despite a 25% increase in revenue to €7.1bn. The decline reflected project execution-related losses, mainly tied to the Protos strategic energy and resource project in the UK.

Revenue growth was supported by stronger performance in renewables, infrastructure, and concessions. This helped offset some weakness from metals, but did not prevent the group-wide earnings decline.

Metlen is also moving into critical materials. The company plans to produce up to 50 t/yr of gallium by 2028 after reaching full capacity, supported by a €90mn investment from the European Investment Bank.

This gallium project could give Metlen a more strategic role in Europe’s critical minerals supply chain. Gallium is important for semiconductors, power electronics, optics, defense systems, and advanced communications technologies.

The Metalnomist Commentary

Metlen’s results show that Europe’s aluminium industry still faces a structural energy-cost problem. The gallium project gives the company a higher-value strategic materials angle, but its aluminium margins will remain tied to power competitiveness.

Aluminium Dunkerque Acquisition Expands Alba’s Reach Into EU Aluminium Smelting

Aluminium Dunkerque

Aluminium Dunkerque acquisition plans will give Aluminium Bahrain a major foothold in European primary aluminium production. Alba has agreed to acquire the French smelter from US private equity firm American Industrial Partners, creating a more geographically diversified aluminium group.

Aluminium Dunkerque is the largest aluminium smelter in the EU, with capacity of around 300,000 t/yr. The facility gives Alba direct exposure to European customers, EU industrial policy, and the region’s growing demand for lower-carbon aluminium supply.

The Aluminium Dunkerque acquisition also reflects a broader reshaping of aluminium ownership in Europe. Smelters with stable power access, strong industrial customers, and low-carbon potential are becoming strategically valuable as Europe tries to preserve energy-intensive manufacturing.

Alba Targets Long-Term Industrial Strategy in France

Alba said the transaction would combine two aluminium producers with complementary regional footprints. The company plans to maintain an industrial strategy anchored in France, led locally, and focused on operational stability.

This is important because Aluminium Dunkerque has changed ownership several times in recent years. American Industrial Partners has owned the smelter since 2021, after foreclosing on shares linked to GFG Alliance’s financing default. The facility had previously been owned by GFG subsidiary Liberty France Industries.

Alba’s management emphasized continuity, employee support, and continued investment. That message is likely aimed at French stakeholders, including workers, customers, power suppliers, and policymakers concerned about the future of domestic industrial capacity.

Low-Carbon Aluminium Becomes a Strategic Asset

Aluminium Dunkerque acquisition plans could strengthen Alba’s position in low-carbon aluminium markets. European customers increasingly need aluminium with stronger emissions credentials for automotive, packaging, construction, electrical equipment, and energy transition applications.

Alba said it wants to expand low-carbon production capabilities at the French site. This aligns with France’s industrial and energy priorities, especially as Europe seeks to defend strategic manufacturing while reducing carbon emissions.

The possible involvement of Bpifrance also matters. Alba said it is willing to offer the French state-backed investment bank a shareholding position as part of the transaction. Such participation could help align the deal with national industrial policy and support long-term investment at the smelter.

The Metalnomist Commentary

The Alba deal shows that European smelting assets remain strategically attractive when they offer scale, customer access, and low-carbon potential. Aluminium Dunkerque is not just a capacity acquisition; it is a gateway into Europe’s industrial decarbonisation agenda.

EGA Aluminium Recycling Strategy Expands With Eco Green Acquisition

EGA Aluminium Recycling

EGA aluminium recycling strategy has advanced with Emirates Global Aluminium agreeing to acquire an 80% stake in Italian aluminium recycler Eco Green. The deal strengthens EGA’s recycled aluminium footprint in Europe and adds another foreign recycling platform to its growing international network.

Eco Green operates near Verona in northeast Italy. The company collects, sorts and distributes around 23,000 t/yr of aluminium scrap, while its nearby casting facility produces more than 20,000 t/yr of secondary aluminium sows.

EGA aluminium recycling capacity will expand further because Eco Green is planning an additional 15,000 t/yr of recycled aluminium capacity at its casting facility. This gives EGA both existing production and near-term growth potential in the European secondary aluminium market.

The acquisition shows that EGA is moving beyond its traditional UAE-based integrated aluminium model. Instead of relying only on primary metal expansion, the company is buying recycling assets closer to scrap sources and downstream customers.

Eco Green Adds European Scrap and Casting Capacity

Eco Green gives EGA direct access to Italian aluminium scrap collection, sorting and secondary casting capacity. This is strategically important because scrap access is becoming a core competitive advantage in aluminium.

Secondary aluminium requires far less energy than primary aluminium. It also helps customers reduce embedded carbon in automotive, packaging, construction and industrial products.

The Verona-area location gives Eco Green access to Europe’s mature industrial scrap flows. Italy is one of Europe’s major manufacturing centres, which supports steady availability of post-industrial aluminium scrap.

The casting facility also gives EGA a route to convert collected scrap into secondary aluminium sows. This strengthens value capture because the business is not limited to scrap trading or sorting.

The planned 15,000 t/yr expansion will deepen that position. It should allow Eco Green to process more scrap internally and support EGA’s broader recycled aluminium supply targets.

EGA Builds a Global Secondary Aluminium Platform

The Eco Green deal follows EGA’s acquisition of German recycling company Leichtmetalle in 2024. EGA later announced an expansion of that facility, which will increase capacity more than six-fold.

EGA also bought a majority stake in US secondary aluminium smelter Spectro Alloys in 2024. Since then, it has announced two expansions that will lift Spectro’s total capacity to more than 200,000 t/yr of secondary aluminium ingots and billets, from 110,000 t/yr previously.

Following the Eco Green acquisition, EGA aluminium recycling capacity will total more than 400,000 t/yr across the UAE, Europe and the US. A further 200,000 t/yr is under development.

This creates a more diversified aluminium business. EGA can still rely on its primary aluminium base in the UAE, but recycling gives it lower-carbon growth in key consuming regions.

The strategy also responds to customer demand. Buyers increasingly want aluminium with lower carbon intensity, traceable scrap inputs and regional supply security.

For EGA, recycled aluminium acquisitions offer faster market entry than building new primary smelting capacity. They also reduce exposure to energy-intensive growth and place the company closer to circular aluminium supply chains.

The Metalnomist Commentary

EGA’s Eco Green acquisition confirms that global aluminium competition is shifting toward scrap control and secondary capacity. The winners in low-carbon aluminium will not only own smelters; they will own regional recycling networks close to customers.

Century Nordural Aluminium Restart Moves Ahead After Iceland Potline Outage

Century Nordural aluminium

Century Nordural aluminium restart has begun at the company’s Grundartangi smelter in Iceland after an electrical equipment failure halted production on the second potline in October. Century Aluminum said the first pots have been energised and the remaining pots will be restarted on an accelerated schedule.

The Century Nordural aluminium restart is expected to bring the second potline close to full production by the end of July. The restart follows repairs to failed transformers, which are scheduled to be replaced with new units later this year.

Century Nordural aluminium restart timing is important because the global aluminium market remains sensitive to smelter outages, power reliability and regional supply disruptions. Any faster-than-expected return of capacity can ease some pressure on primary aluminium availability.

Century had previously expected to restart the second potline by the end of April and return to near full production by the end of July. The early restart suggests the repair programme is progressing ahead of schedule.

Iceland Smelter Recovery Could Support 2026 Output

Nordural’s Grundartangi smelter produced 275,000t of aluminium in 2025. Century said in February that it expected the Icelandic operation to produce 215,000t in 2026, down by 21.8% from the previous year because of the potline outage.

The early restart may improve this year’s production outlook. However, the final impact will depend on how quickly Century can re-energise the remaining pots and stabilise operations.

Primary aluminium smelters are highly sensitive to power and electrical infrastructure reliability. A transformer failure can remove large volumes from supply because restarting pots requires careful sequencing and operational control.

The restart also matters for European aluminium users. Icelandic aluminium is part of the broader Atlantic supply base, and any disruption can influence regional availability, premiums and procurement planning.

Century’s ability to bring the potline back ahead of schedule helps reduce uncertainty. Still, the planned transformer replacement later this year means electrical resilience will remain a key operational focus.

Century Expands US and Iceland Aluminium Supply

Century’s Iceland restart comes shortly after the company began production from its Mt Holly expansion project in South Carolina. The Mt Holly project is expected to lift that smelter to 229,000 t/yr by the end of June.

The two developments strengthen Century’s position across both North American and Atlantic primary aluminium supply. Nordural restores disrupted Icelandic output, while Mt Holly adds domestic US production capacity.

This is strategically relevant as aluminium supply chains become more policy-sensitive. The US has moved to support domestic primary aluminium production through trade measures, while European buyers remain exposed to power costs, smelter outages and regional premium volatility.

Century is therefore improving supply availability from two directions. The company is recovering lost production in Iceland and expanding output in the US.

For the market, the restart provides near-term supply relief. For Century, it reduces the earnings impact of the October outage and supports a stronger production base heading into the second half of 2026.

The Metalnomist Commentary

Century’s Nordural restart shows how quickly aluminium supply risk can turn on electrical infrastructure reliability. In a tight primary aluminium market, restoring idled pots ahead of schedule can matter almost as much as adding new capacity.

Alcoa San Ciprián Smelter Restart Targets Full Capacity by Mid-2026

Alcoa

Alcoa San Ciprián smelter restart plans will bring the company’s 228,000 t/yr Spanish aluminium site back to full capacity by mid-2026. The restart marks an important recovery step for European aluminium smelting after the site was closed in 2022 because of high Spanish energy costs.

Alcoa San Ciprián smelter restart progress reached 65pc completion by the end of December 2025. The company reopened the facility last year as part of a wider move to restore previously idle capacity across its global smelting portfolio.

The restart is strategically important because European aluminium smelting remains highly exposed to power costs, policy pressure, and import competition. Bringing San Ciprián back online improves Alcoa’s production base, but it also highlights the continuing challenge of operating energy-intensive aluminium assets in Europe.

Smelter Ramp-Ups Lift Alcoa’s Active Capacity

Alcoa also ramped up production at its previously dormant Alumar smelter in Brazil and Lista smelter in Norway during 2025. These three restarts reduced the company’s idle smelting capacity from 376,000 t/yr to 196,000 t/yr.

The company has a base smelting capacity of 2.6mn t/yr. Its 2026 aluminium production guidance remains unchanged at 2.4mn-2.6mn t, up from 2.3mn t produced in 2025. This indicates that the ramp-ups should support higher output this year.

Alcoa San Ciprián smelter restart also carries broader supply-chain meaning. More operating capacity in Spain could support regional aluminium availability, but sustained competitiveness will depend heavily on power prices and long-term energy arrangements.

Tariffs and Premiums Reshape Aluminium Economics

Alcoa faced significant tariff-related costs in 2025, with aluminium import tariffs adding $571mn over the year. The company said tariff pressure also helped push Midwest aluminium premiums up by 211pc.

Higher Midwest premiums have recently been high enough to fully cover Alcoa’s tariff costs. This shows how trade policy can reshape aluminium market economics by shifting costs through regional premiums and changing the value of domestic or tariff-protected supply.

For aluminium buyers, the implication is clear. Smelter restarts may increase physical supply, but tariffs, premiums, energy costs, and regional policy structures will continue to influence delivered metal costs. Aluminium supply is no longer just a question of tonnage; it is increasingly a question of location, power security, and trade exposure.

The Metalnomist Commentary

Alcoa’s San Ciprián ramp-up shows that aluminium capacity can return when market and policy conditions improve, but energy remains the real competitiveness test. In the US, tariffs are being absorbed through premiums; in Europe, power costs still decide whether smelting capacity can survive.

Switzerland Adopts EU’s Russian Aluminium Ban in Sanctions Alignment

Russian aluminium

Federal Council Moves to Restrict Russian and Belarusian Aluminium Imports

Switzerland has adopted the EU’s Russian aluminium ban, aligning with Brussels’ 16th sanctions package targeting Moscow’s industrial exports. The Focus Keyphrase "Switzerland Russian aluminium ban" marks a significant shift in Swiss trade policy, historically characterized by neutrality, as the country intensifies its stance against Russian aggression.

The Federal Council announced it will implement all remaining relevant EU sanctions, including a ban on Russian primary aluminium imports and a prohibition on chromium ore exports to Russia. These measures aim to reduce materials that contribute to Russia’s military and technological advancement. Switzerland imported approximately 173,000 tonnes of unwrought Russian aluminium in 2023, according to Global Trade Tracker.

Belarusian Aluminium Also Targeted as Sanctions Widen

In parallel, Switzerland will enforce additional sanctions on Belarus, citing its complicity in the Ukraine war. These include a ban on Belarusian primary aluminium imports and expanded restrictions on dual-use and military-enhancing goods.

The Council emphasized that aligning sanctions with the EU is intended to prevent circumvention via Belarus, ensuring a more unified and effective European sanctions regime. This harmonization reduces the risk of Russian commodities entering EU markets indirectly through Swiss or Belarusian channels.

Strategic Impact on European Aluminium Supply Chains

The Swiss ban on Russian aluminium imports adds further pressure on Europe’s primary aluminium supply, which is already constrained by energy costs and limited regional production. Traders and manufacturers must now reassess sourcing strategies, particularly for unwrought aluminium, as the region seeks alternatives from non-sanctioned producers such as Norway, Canada, and the Middle East.

Meanwhile, the ban on chromium ore exports to Russia may impact specialty alloy production and stainless steel supply chains, especially those tied to aerospace and defense markets.

The Metalnomist Commentary

Switzerland’s adoption of the Russian aluminium ban underscores a growing consensus in Europe on restricting key industrial imports tied to Moscow. As sanctions converge and enforcement tightens, metals traders and manufacturers will need to recalibrate logistics and risk strategies in a rapidly evolving geopolitical landscape.

EU to Launch Aluminium Safeguard Probe Amid Rising Import Pressure

EU Aluminium

New U.S. Tariffs and CBAM Adjustments Prompt EU to Rethink Aluminium Trade Policy

Brussels Acts to Shield European Aluminium Industry

The European Commission will launch a safeguard investigation on 19 March to assess the need for trade defense measures on aluminium imports. This move responds to fears that U.S. tariffs will redirect global aluminium flows into Europe.

Washington reintroduced 25% import tariffs on steel and aluminium on 12 March, prompting the EU to act. European producers risk losing U.S. market access while facing increased inflows of diverted metal. Unlike steel, aluminium is not yet protected by EU safeguard measures.

Since 2021, over half of Europe’s aluminium smelting capacity has been curtailed. Today, just 46% of EU aluminium demand is sourced domestically. The Commission warns that continued pressure from imports threatens the survival of remaining producers.

New 'Melt and Pour' Rule and CBAM Reform

In addition to safeguard measures, the Commission will implement a new “melt and pour” rule. This rule defines the origin of metal products based on where they were originally melted—not where they were later processed. It aims to block minimal transformations that allow products to bypass tariffs or dumping duties.

The carbon border adjustment mechanism (CBAM) will also undergo revisions. The proposed update would extend the carbon levy to more aluminium- and steel-intensive downstream products. This adjustment addresses concerns that carbon-intensive imports could undercut EU-made goods, which comply with stricter climate rules.

The EU also plans to address carbon leakage. It will design compensation mechanisms for CBAM-regulated goods exported from the EU, with new anti-circumvention rules due in Q4 2025, before CBAM fully activates in 2026.

Scrap Export Restrictions and Demand Boosts Ahead

To secure domestic raw materials, the EU plans to tighten scrap metal export controls. The Commission will explore reciprocal restrictions on countries that limit scrap exports to the EU and may impose new charges on outbound scrap.

By the end of 2026, the EU will propose new demand-side targets for steel and aluminium usage in critical sectors like construction. These measures aim to support domestic producers while aligning with climate and circular economy goals.

EU-India FTA Could Improve Indian Aluminium Access, but CBAM Still Limits the Upside

Hindalco Industries

The EU-India FTA could improve the position of Indian aluminium suppliers in Europe. The deal would reduce EU tariffs on Indian base metal imports to zero from 10pc. That change could give Indian aluminium exports a stronger commercial opening. As a result, the EU-India FTA may improve competitiveness for producers such as Hindalco and Vedanta.

The tariff change matters because Indian suppliers have faced a clear disadvantage in Europe. Duty-free suppliers such as Norway, Iceland, and Canada already held an edge. Removing the tariff could narrow that gap. Therefore, Indian aluminium suppliers may enter the EU market on more equal terms.

However, the agreement does not remove every barrier. EU CBAM will still apply to imported goods, even after the tariff cut. That means carbon costs will remain a major factor in future trade economics. Consequently, the EU-India FTA improves access, but does not create a fully open market.

Indian Aluminium Exports Could Gain on Tariffs but Still Face Carbon Pressure

Indian aluminium exports could benefit immediately from lower tariff friction. Price-sensitive buyers in Europe may find Indian material more attractive under a zero-duty regime. That could support better trade flows from India to the EU. Meanwhile, producers are still waiting for final clarity on aluminium in the completed legal text.

CBAM remains the deeper long-term issue. The European Commission has already confirmed that the FTA offers no exemption from the carbon border measure. Importers will still face carbon-related obligations under EU climate policy. Therefore, Indian aluminium suppliers must think beyond tariffs and prepare for emissions competitiveness.

This is why industry optimism remains cautious rather than aggressive. Lower tariffs help, but they do not neutralize non-tariff costs. A trader in the article described CBAM as a continuing trade barrier. As a result, the full commercial benefit of the EU-India FTA may prove smaller than the headline suggests.

EU-India FTA Arrives as Indian Aluminium Exports to Europe Have Already Declined

Indian aluminium exports to the EU have already weakened in recent years. Rising domestic demand in India has reduced export availability. Lower export incentives have also weighed on overseas shipments. Therefore, the industry is entering this trade opportunity from a lower export base.

The recent numbers show that decline clearly. India’s primary aluminium exports to the EU fell sharply in 2024 from the previous year. Shipments in January to November 2025 also remained subdued. Consequently, the EU-India FTA may help stabilise exports first before driving a major surge.

The real opportunity will depend on how Indian producers balance three pressures. They must manage domestic demand, EU carbon costs, and international price competition. Tariff relief helps with one of those problems. However, it does not solve the other two. Therefore, Indian aluminium suppliers may gain an edge, but only within tighter structural limits.

The Metalnomist Commentary

This deal improves trade access, but it does not remove the real future test. European aluminium trade will increasingly depend on carbon performance as much as tariff policy. For Indian suppliers, the EU-India FTA is helpful, but CBAM will still decide who wins long term.