Constellium may drop EU metal recycling plans due to scrap squeeze, CEO says

By Reuters News

PARIS, Sept 22 (Reuters) - Aluminium products maker Constellium may drop plans to expand recycling in the European Union unless policymakers resolve a scrap shortfall linked to used metal being exported overseas, its CEO said on Tuesday.

  • The European Commission angered industry representatives this month by abandoning plans to impose an export duty on aluminium scrap, which the industry says is crucial to keeping more of the low-cost raw material in Europe. The EU's executive is now proposing to curb scrap outflows through waste shipment rules.

  • Constellium, like other producers in Europe, is sceptical about the waste approach given a large number of non-OECD countries seeking exemptions, CEO Ingrid Joerg told Reuters.

  • "We have several recycling projects in the pipeline that we are investigating. But if there's no scrap, they're not going to happen," she said.

  • The projects covered Constellium's different market segments, such as packaging, auto and aerospace, and could be larger or smaller than a previous €130 million ($148.82 million) recycling expansion at its Neuf-Brisach plant in France, she said, declining further details.

  • Constellium recycles some of its production in a closed loop but also relies on external scrap.

  • The loss of scrap to exports is among grievances of an EU aluminium sector also grappling with the bloc's carbon border-tax scheme and soaring energy prices.

  • Constellium welcomed changes to the carbon border levy voted by the European Parliament last week, but final adoption was needed swiftly to close loopholes, Joerg said.

  • The border levy is expected to push up European aluminium premiums, adding to global inflation pressures linked to energy costs, tariffs and Mideast disruption, she said.

  • Constellium's US operations were benefiting overall from tariffs, with a high recycling rate and US retention of scrap offsetting the impact of tariffs on Canadian aluminium, she added.





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