Aluminum Association calls for UBC export ban

The Aluminum Association is urging the federal government to ban exports of used beverage containers (UBC) and to take other measures to improve scrap recovery and reuse within the U.S.

The U.S. consumes between 5 million and 6 million metric tons of aluminum scrap annually while exporting more than 2 million metric tons, the Arlington, Virginia-based trade organization said in a white paper released last week. The domestic aluminum industry depends heavily on recycled scrap for production, which only about 5% of the energy needed to make primary metal – saving money, reducing energy demand, and lowering manufacturing costs.

“Today, around 85% of the aluminum made in the United States is ‘secondary’ aluminum that uses recycled scrap as a main material/metal input,” the group stated. “This compares to 20% to 30% U.S. secondary production in the 1980s – a shift driven by the closure of domestic smelters and increased recycling.”

The association is calling for:

An immediate ban on UBC exports outside of North America.
An update to the tariff schedule and other tracking mechanisms to better monitor scrap flows and enforce restrictions.
Investment in new technology to improve scrap collection and sortation, including passage of the CIRCLE Act.
Potential expansion of export controls to other types of mill-ready scrap once tracking systems and infrastructure improves.

The association noted that such a ban would exclude lower-quality scrap such as zorba and twitch.

The white paper also pointed out that the industry has recently announced investments in new plants and capacity expansions in the U.S., creating greater demand for scrap as a feedstock. Over the past decade, more than $11 billion has been invested in new and expanded operations across the country, according to the group.

“Scrap aluminum is a vital feedstock for American manufacturers, especially at a time when U.S. aluminum firms are investing and need reliable and affordable access to metal like never before,” said Charles Johnson, president and CEO of the Aluminum Association, in a statement.

“Smart, targeted export controls that keep our highest-quality scrap, like used beverage containers, within our borders will help to build a stronger U.S. aluminum industry and support American manufacturing in general. Otherwise, we’re giving up our competitive edge and letting non-market economies like China dominate yet another aluminum market.”