With tariffs on aluminum from China, the price of scrap metal will skyrocket according to some forecasts
The restored European Union duties on aluminum imports from China due on July 12, 2022. A measure that is already having an impact on the car scrap prices, according to a paradigm that has affected raw materials and energy carriers in recent months. If you think that the closest alternative to China for the supply of aluminum semi-finished products is Russia, the recyclability of aluminum in all its forms further develop businesses who also deal in auto scrap and other sources.
SCRAP VEHICLE MARKET GROWS WITH EU DUTIES ON CHINESE ALUMINUM
The European Union has once again lifted the barriers aluminum imports from China, for extruded and rolled semi-finished products. The rights also apply to many other products, such as, for example, aluminum alloy rims with 22.3% tax. A measure aimed at protecting the internal market which will however have effects on the scrap metal market, including that recovered from end-of-life vehicles. The recyclability of aluminum allows it to be reused practically indefinitely, but generally always in the same area from which it comes, unless it is destined for intermediate treatment and decontamination processes, with an increase in costs. Basically, aluminum from cans becomes new raw material for other cans, aluminum for construction, is back in the same cycle. On the other hand, what is generically called aluminum actually comes in the form of various aluminum alloys with very different characteristics and fields of application.
THE GLOBAL ALUMINUM MARKET WILL REACH 256 BILLION IN 2026
According to the CSC Compagnia Svizzera Cauzioni, which deals with the following companies active both in the industrial sector and companies that dispose of unused scrap, the impact of tariffs will grow the scrap metal market. With the increase in new car prices and the 2035 ban, there is a great risk for many EU countries to end up with a fleet on the road like in Cuba but without an embargo. Curb the attack on China, at the head of the major countries that work with aluminium, ahead of India, Russia, Canada, United Arab Emirates, Australia, Bahrain, Norway, United States and Icelanddoes not exclude the need to resort to effective international policies. Still according to fortunebusinessinsights, the value of the world aluminum market is expected to grow from $159.3 billion in 2021 to 256 billion dollars in 2029.
ALUMINUM DUTIES IN CHINA: WHERE THEY ARE TAKEN
It must be said, however, that the duties on aluminum from China, in Europe until about 32%, are not exclusive to the European Union. Anti-dumping duties on Chinese aluminum are active also in USA, Canada, India, South Korea, Australia and Vietnam.
Source : Sicur Auto