New guidelines that will apply to aluminium and ferrous scrap in the European Union (EU) from October could change the way material is shipped between member states, affecting scrap prices and market dynamics, said Burges Salmon senior associate Chris Pritchett in an interview with industry publication Metal Bulletin this month.

The new procedures, should companies fall within their criteria, could see many cargoes of scrap classified as “end-of-waste” material. This will allow them to benefit from trans-frontier shipment discounts while also making scrap products more uniform in composition.

The EU waste framework directive specifies that material ceases to be waste when: it has undergone a recovery operation; it is commonly used; a market or demand exists; it meets technical requirements, legislation and standards; and when it has no overall adverse environmental or human health effects.

“[The new guidelines] present the ability for the dealer to certify that [the scrap] is end-of-waste and to step out of the restraints of waste-related legislation,” Pritchett told MB's readers

To qualify as end-of-waste material, ferrous and aluminium scrap must comply with general industry specifications or a customer specification, and include foreign materials (steriles) in proportions smaller than 2% (ferrous scrap) or 5% (aluminium) by weight. It must also be free of visible oil, and have no radioactive or hazardous properties.

The guidelines are not mandatory, but their criteria should not be hard to achieve for scrap recyclers, Pritchett said.