Tighter restrictions on primary aluminium mean more investment in scrap

Growing consumer appetite for sustainable products and tighter regulations on carbon-intensive primary aluminium production, such as the EU’s recent proposal for a carbon border adjustment mechanism (CBAM), have seen greater investment in scrap-processing facilities across Europe, providing long-term support for scrap prices as a result.

CBAM calls for EU importers of steel and aluminium to pay for carbon certificates corresponding to the carbon price that would have been paid if the goods had been produced within the bloc.

The mechanism is intended to “address the risk of carbon leakage, to contribute to the decarbonization objectives in the EU, to encourage producers in third countries who export to the EU to adopt low-carbon technologies, and to ensure that the price of imports reflects more...


Imogen Dudman

November 09, 2021

18:18 GMT