The Aluminum Association has released a white paper outlining the need for government action to keep more aluminium scrap within the US.
The paper, titled “Scrap the Exports, Save U.S. Supply: Treating Aluminum Scrap as a Strategic Asset” highlights how the US currently runs a ~1.3mt trade deficit in aluminium scrap.
Charles Johnson, CEO of the Aluminum Association, said: “Scrap aluminium is a vital feedstock for American manufacturers, especially at a time when US aluminium firms are investing and need reliable and affordable access to metal like never before,
“Smart, targeted export controls that keep our highest-quality scrap, like used beverage containers, within our borders will help to build a stronger US aluminium industry and support American manufacturing in general.
“Otherwise, we’re giving up our competitive edge and let non-market economies like China dominate yet another aluminum market.”
The specific measures the association is calling for are:
- An immediate ban on used beverage container (UBC) exports outside of North America where the free flow of UBCs is essential to regional industry.
- Updated US Harmonized Tariff Schedule (USHTS) codes and other tracking mechanisms to better monitor aluminium scrap flows and enforce restrictions.
- Investment in new technology to improve scrap collection and sortation.
- Potential expansion of export controls to other types of mill-ready scrap over time as tracking and infrastructure improves.
The paper also further lists some of the key arguments for these measures, including aluminium scrap being a strategic asset, the material’s importance to US defence systems, and the threat of China’s rapidly expanding recycling capacity.
It is hoped these measures can help keep high-quality scrap in the US. Johnson added: “By focusing only on the scrap we can use and value most, we make sure that American recyclers win and that lower-grade scrap still finds a market abroad until we’re ready to process more of it here.”
For more information, visit: www.aluminum.org/ScrapTheExports