Aluminium scrap becomes a strategic raw material for Europe

Europe’s aluminium industry is facing growing challenges in the supply of primary aluminium. Geopolitical developments, disruptions to key trade routes and additional pressures in the international market environment are changing the raw material situation.

Examples include disruptions to shipping through the Strait of Hormuz, damage to key facilities in the Middle East and tightened sanctions against Russia. The Gulf region accounts for around nine percent of global primary aluminium production. Russia has long been an important source of low-carbon primary aluminium for Europe.

Europe’s primary aluminium shortfall is estimated at more than 87 percent of total demand. This results in an annual import requirement of around eight million tonnes. At the same time, aluminium prices have risen over the past twelve months from around USD 2,400 per tonne to more than USD 3,500 per tonne. By the end of June, they had fallen back to around USD 3,100 per tonne, but still remained well above historical averages.

This development is increasing the pressure on European aluminium processors to diversify their raw material supply and focus more strongly on secondary raw materials.

Aluminium scrap as a bottleneck factor

Against this backdrop, aluminium scrap is moving further into focus. Eural Gnutti no longer describes aluminium scrap only as a component of the circular economy, but as one of the biggest bottlenecks for Europe’s aluminium industry.

One key reason is the significantly lower energy requirement of recycling. According to the International Aluminium Institute, producing primary aluminium from bauxite requires an average of around 52 kWh of energy per kilogram. Recycling aluminium, by contrast, requires just over 2 kWh per kilogram. This corresponds to an energy saving of more than 95 percent and, according to Eural Gnutti, also significantly reduces CO₂ emissions.

At the same time, global competition for high-quality aluminium scrap is increasing. Recent US trade measures are also affecting international material flows: tariffs of 50 percent on aluminium semi-finished products and 15 percent on aluminium scrap are changing trade routes and intensifying competition for available scrap volumes.

For European processors, this means reduced availability of scrap combined with higher purchasing costs. In many cases, these now exceed the reference prices of the London Metal Exchange.

EU debate on raw material policy

The growing pressure on aluminium supply is also influencing the European view of secondary raw materials. Over the past two years, Eural Gnutti has worked with European institutions to highlight the importance of aluminium scrap for industrial competitiveness, raw material security and decarbonisation.

The topic is gaining increasing attention at EU level. Proposals by EU Commissioner for Trade and Economic Security Maroš Šefčovič have been cited in this context. They aim to limit the export of aluminium scrap to non-EU countries while ensuring that sufficient volumes remain available within the European single market.

If such measures are adopted, aluminium scrap could be recognised as a strategic raw material for the first time. This would strengthen its importance for the recycling sector, the aluminium processing industry and the wider value chain.

Eural Gnutti’s recycling strategy

For Eural Gnutti, recycling is not a short-term response to current market pressure, but part of a long-term corporate strategy. Since the 1990s, the company has built up expertise in recycling technologies, process development and metallurgy.

Current activities include the processing of internal foundry and extrusion scrap in a so-called run-around process, as well as the use of secondary aluminium. This material mainly comes from recycling streams in Italy and other European countries.

Eural Gnutti states that this approach has helped the company maintain a stable raw material supply and reliable deliveries to customers.

Secondary alloys and metallurgical requirements

Alongside the availability of scrap, its composition is also becoming increasingly important. Eural Gnutti focuses on high-performance aluminium alloys made from increasingly diverse scrap sources.

The challenge is not only to replace lead. What matters are metallurgical processes that can handle different scrap compositions. Unwanted trace elements must be kept within strict limits while preserving the required mechanical properties of the alloys.

The planned revision of the European RoHS Directive could further influence this development. Due to long product lifetimes, particularly in vehicles, lead will continue to enter recycling loops for years to come. However, its concentration is expected to gradually decrease with each recycling cycle.

Competitive factor for Europe’s metal industry

The growing importance of aluminium scrap points to a broader shift in Europe’s metal industry. While energy prices and CO₂ emissions have long shaped the debate, reliable access to high-quality recycled aluminium is developing into another competitive factor.

For foundries, extrusion plants and other aluminium processors, securing certified and consistent scrap supplies could become as important as access to affordable energy, modern production technology and qualified personnel.

Companies that can establish closed material loops and produce high-performance secondary alloys are positioning themselves more resiliently in a raw-material-intensive market environment.