“Unprecedented” is an overused word in politics but for the last six months it has felt unprecedented for the UK aluminium sector - with the recent US steel and aluminium tariffs forcing countries, like the UK, to rethink its trade approach. Although, the recent UK-US Economic Partnership Deal has brought some potential relief to aluminium companies and manufacturers, the US’s actions have shown how important aluminium is to the US and the global economy.
So, how does this impact aluminium packaging recycling? The immediate impact of the tariffs has resulted in the cost of aluminium rising exponentially within the US market, even impacting aluminium waste and scrap, like UBCs, which saw prices rise at a similar speed.
Originally, aluminium waste and scrap were exempt from the tariffs which made the US a highly attractive place to export scrap. Although we do not know the amount of scrap that has been diverted to the US over the last few months (due to time lags in trade data), it has not helped the overall issue that the UK faces with scrap leaving the UK or Europe.
Recent Alupro data shows that in 2024, the amount of aluminium packaging that has been recycled in the UK has fallen since 2023, with substantial increases in aluminium packaging being exported from the UK to Southeast Asia. Over the years, the UK has developed a strong aluminium recycling relationship with Europe due to similar recycling policies and approaches. However, Alupro data shows that of the top three export destinations for aluminium packaging, two are outside of Europe, which, if not addressed, is harmful for UK recyclers and manufacturers who rely upon access to scrap to fuel their production.
Currently, the UK has the capacity to recycle a lot of the UBC produced in the country, but this often depends on the quality of the UBC. With our new investment in Novelis Latchford (UBC+), due to be complete by January 2027, we will be able to recycle all the UK’s UBC and more, regardless of quality. These upgrades will not only boost the plant’s recycling volume and efficiency but result in an annual CO2e reduction of more than 350,000 tonnes. This expansion will also be fundamental to the success of DEFRA’s Deposit Return Scheme, who recently saw their Management Organisation (DMO) announced a month ago.
With more political attention being focused on protecting critical and strategic metals and improving the UK’s circular economy, it is important that we understand more about where our aluminium packaging is being recycled, in order to reassure the public that their recycling is being processed at the highest standards.
If you want to learn more about our UK recycling capabilities, please get in contact with our Metal Procurement team: https://www.novelisrecycling.co.uk/ Also see our latest campaign celebrating aluminium’s circularity: https://circularity.novelis.com/
