Recent geopolitical upheavals are reshaping the global aluminium market at its core. As reliance on primary aluminium becomes an increasingly significant geopolitical risk, aluminium scrap is taking on a more strategic role for European industry. Companies that have invested early in recycling technologies, closed-loop material flows and high-performance secondary alloys are increasingly positioned to secure a competitive edge.
The race for available scrap is therefore becoming an increasingly important factor in Europe’s industrial competitiveness.
Europe’s Primary Aluminium Supply Under Pressure
Europe is facing growing challenges in securing sufficient supplies of primary aluminium. Disruptions to shipping through the Strait of Hormuz are impacting trade from the Gulf region, which represents around nine percent of global primary aluminium production. Meanwhile, damage to key facilities in the Middle East, including Aluminium Bahrain (Alba) and Emirates Global Aluminium (EGA), together with tighter sanctions on Russia, is adding further pressure to the European market. Russia had long been an important source of low-carbon primary aluminium for Europe.
Today, Europe’s primary aluminium shortfall exceeds 87% of total demand, meaning that around eight million tonnes must be imported each year. The market response has been significant. Over the past twelve months, aluminium prices have risen from roughly US$2,400 per tonne to more than US$3,500 per tonne. While prices fell back to around US$3,100 per tonne at the end of June, they remain considerably higher than historical averages.
Aluminium Scrap Emerges as the Critical Resource
An increasingly serious challenge is developing within the recycling market. Aluminium scrap has evolved from being simply a component of the circular economy into one of the main constraints facing Europe’s aluminium industry.
The underlying reasons are straightforward. According to the International Aluminium Institute, producing primary aluminium from bauxite consumes an average of around 52 kWh of energy per kilogram. Recycling aluminium, in comparison, requires only slightly more than 2 kWh per kilogram. This corresponds to energy savings of over 95% and also significantly lowers CO₂ emissions.
At the same time, rising demand is intensifying global competition for high-quality aluminium scrap. Recent U.S. trade measures are adding further pressure. Tariffs of 50% on aluminium semi-finished products and 15% on aluminium scrap are changing international trade patterns and increasing competition for available scrap. For European processors, the result is reduced scrap availability combined with substantially higher purchasing costs, which in many cases have now moved above London Metal Exchange (LME) reference prices.
A New European Approach to Aluminium Scrap
The growing pressure on aluminium supplies is also influencing the way Europe views secondary raw materials. Over the past two years, Eural Gnutti has worked with European institutions to underline the role of aluminium scrap in maintaining industrial competitiveness, securing raw material supplies and advancing decarbonisation.
This issue is increasingly receiving attention at EU level. Proposals announced by European Commissioner for Trade and Economic Security Maroš Šefčovič seek to limit exports of aluminium scrap to non-EU countries while ensuring that sufficient quantities remain available within the European Single Market.
Such measures could signal a major change in European raw materials policy. If adopted, aluminium scrap would be recognised as a strategic raw material for the first time, strengthening its importance across the recycling sector, aluminium processing industry and wider value chain.
Decades of Investment in Recycling Give Eural a Strong Position
For Eural Gnutti, recycling is rooted in a long-term industrial strategy rather than being a reaction to current market pressures. Since the 1990s, the company has steadily expanded its expertise in recycling technologies, process development and metallurgy.
Its current operations include the processing of internal foundry and extrusion scrap through the so-called Run-around process; alongside secondary aluminium sourced mainly from recycling streams in Italy and elsewhere in Europe. Eural says this established approach has helped the company maintain a stable supply of raw materials and dependable customer deliveries even as market volatility has increased.
At the same time, Eural is focused on producing high-performance aluminium alloys from increasingly diverse scrap inputs. The challenge goes beyond simply replacing lead. It requires metallurgical processes that can handle different scrap compositions while keeping unwanted trace elements within strict limits and maintaining the required mechanical properties.
The planned revision of the European RoHS Directive is likely to further influence this development. Lead will continue to enter recycling streams for years to come because of the long service life of products, particularly vehicles. However, its concentration is expected to decrease progressively with each recycling cycle.
“Experience shows that investment in innovation and research allows companies to turn global challenges into opportunities for growth and competitiveness,” says Giorgio Di Betta. From his perspective, the measures currently being considered at EU level could help establish the basis for a more resilient and circular model of industrial production.
Why Recycled Aluminium Could Shape Europe’s Industrial Future
The growing importance of aluminium scrap signals a broader change for Europe’s metals industry. While energy prices and CO₂ emissions have dominated the discussion for many years, the reliable availability of high-quality recycled aluminium is now emerging as another critical competitive factor.
For foundries, extrusion companies and other aluminium processors, securing certified and consistent scrap supplies could become as important as access to affordable energy, advanced production technologies and qualified personnel. Businesses that succeed in building efficient closed-loop material systems and manufacturing high-performance secondary alloys are likely to have a stronger position as competition for raw materials intensifies worldwide.
About Eural Gnutti
Founded in 1968 in Rovato, Italy, Eural Gnutti specializes in the production of semi-finished aluminium alloy products. The company is the world's leading manufacturer of drawn aluminium bars and ranks among Europe's largest producers of extruded bars and profiles.
Its products serve a broad range of industries, including mechanical engineering, automotive, aerospace, medical technology, electrical and electronics manufacturing, and defence. Heat-treated profiles are widely used in automotive applications as well as in pneumatic, drive, hydraulic and heat sink technologies.
Eural operates two production sites in Rovato and Pontevico, covering a total area of 355,000 m², including 70,000 m² of covered production space. The company employs 401 people and generated revenues of €269 million in fiscal year 2025. Its international sales network includes wholly owned subsidiaries, Eural USA Inc. and Eural Deutschland GmbH.
