Constellium To Reconsider EU Aluminium Recycling Projects as Scrap Supply Tightens

SEATTLE (Scrap Monster): Constellium announced that it could reconsider planned aluminium recycling investments in Europe if the region’s shortage of scrap worsens. The announcement highlights growing concerns over a lack of adequate raw-material availability to meet industry requirements.

Chief Executive Ingrid Joerg told Reuters that the company is assessing several recycling projects across its packaging, automotive and aerospace operations. The investments could vary significantly, with some potentially exceeding or falling below the planned EUR 130 million expansion at its Neuf-Brisach facility in France.

Joerg said the availability of suitable aluminium scrap will ultimately determine the future of several projects in the pipeline. It must be noted that Constellium uses recycled material from its own operations, though it also relies on scrap purchased from external suppliers.

The scarcity of aluminum scrap has been a major concern for Constellium, following the European Union’s recent policy measures aimed at retaining more aluminium scrap within the bloc.

The European Commission (EC) recently abandoned a proposed export duty on aluminium scrap. Instead, it currently seeks to restrict overseas shipments through revisions to waste shipment rules. However, Constellium expressed doubts that the proposed framework will sufficiently restrict exports, as many non-OECD countries are likely to obtain exemptions.

Scrap shortage has added to the worries of an already challenging European aluminium market. The market is already burdened with elevated energy costs and the impact of the EU’s carbon border adjustment mechanism.