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The European Union is considering imposing a 15% export tax on aluminium scrap

ICICIdirect Research 29 Jun 2026 DISCLAIMER

News: As per media sources, the European Union is considering imposing a 15% export tax on aluminium scrap to improve scrap availability within the region and support domestic recycling and secondary aluminium production

View: The proposed measure, if implemented, would be sentimentally negative for Novelis, Hindalco's wholly owned US subsidiary, as aluminium scrap is the key raw material for its secondary aluminium business. The export tax could tighten scrap availability and increase scrap procurement costs, potentially weighing on margins in the near term. However, the actual impact will depend on the final policy framework and Novelis' ability to source scrap from alternate markets

Impact: Negative

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