[SMM Analysis]US and Europe Expand Copper Recycling Capacity as Scrap Localisation Takes Shape

The US and Europe have long been major sources of copper scrap and complex copper-bearing materials. However, expanding recycling capacity, stronger resource-security policies and tighter export controls are encouraging more secondary resources—and their processing value—to remain within local markets. The impact may extend beyond high-grade scrap such as Millberry and No. 1 copper to e-scrap, waste cables, mixed copper materials and other complex multi-metal feedstocks.

On July 3, Aurubis officially inaugurated its Complex Recycling Hamburg (CRH) project in Germany. The €190 million facility completed its first melt in March 2026 and is currently ramping up production. At full capacity, CRH will process more than 30,000 mt of additional complex recycled materials annually while expanding Aurubis’ ability to treat complex intermediates from its smelting network. The facility can process materials containing copper, lead and sulphur, recovering copper, lead and precious metals while also producing sulphuric acid.

Aurubis’ recycling project in the US is significantly larger. Its Richmond multi-metal recycling facility in Georgia completed its first melt in September 2025 and subsequently entered the ramp-up stage, with further expansion progressing in 2026. Once both phases are completed, the plant will be capable of processing up to 180,000 mt of complex recycled materials per year, including printed circuit boards, waste copper cables and other metal-bearing feedstocks. The project is expected to source mainly from US suppliers and recover copper, nickel, tin and precious metals domestically.

These projects suggest that some complex materials previously exported to Asia for dismantling, sorting or smelting may increasingly be absorbed locally. As new capacity comes online, competition in the US and Europe is expanding from traditional high-grade copper scrap to e-scrap, mixed copper materials and complex multi-metal feedstocks, broadening the range of materials for which Asian buyers must compete.

The US is also seeking to retain more high-quality copper scrap through policy measures. Proposals include requiring at least 25% of US-produced high-quality copper scrap to be sold domestically and considering an export licensing system. However, the definition of “high-quality copper scrap,” calculation methods, implementation timing and reporting procedures have yet to be fully clarified. Nevertheless, the policy direction is clearly aimed at improving feedstock availability for domestic processors and secondary smelters.

Europe is taking a different approach. Alongside expanding local recycling capacity, the EU’s revised Waste Shipment Regulation will tighten exports of non-hazardous waste to non-OECD countries. Markets that do not meet EU environmental standards and are not included on the approved-country list will be unable to continue receiving relevant waste shipments. Exporters will also be required to arrange independent audits of overseas receiving facilities.

Although the US and Europe are using different measures, the overall direction is similar. The US is relying on new processing capacity, potential domestic-sales requirements and possible export controls, while Europe is combining regional recycling expansion with stricter cross-border waste regulation.

In the short term, these developments are unlikely to cause a sharp decline in US and European copper scrap exports. CRH is still ramping up and will also process Aurubis’ internal smelting intermediates, while Richmond mainly targets complex materials such as circuit boards and waste cables. Their announced processing capacities therefore cannot be directly translated into equivalent reductions in traditional copper scrap exports.

The more immediate effect is likely to be stronger competition for feedstock within the US and Europe. As local smelters improve their ability to process complex materials and high-grade scrap, more cargoes may be sold domestically, strengthening suppliers’ firm pricing and willingness to hold material. According to SMM market research, buyers in China, India, Japan, South Korea and Southeast Asia have already reported rising payabilities, longer procurement cycles and intensifying competition for US and European cargoes.

Overall, the expansion of recycling capacity and stronger resource-management policies indicate that the global copper scrap market is moving towards greater regionalisation and local priority. Global scrap generation may not decline, but a growing share could be absorbed by local smelters and processors, reducing the volume freely available for cross-border trade.

As new projects gradually reach full production and export policies become clearer, competition is expected to expand from Millberry and No. 1 copper scrap to waste cables, e-scrap, mixed copper materials and other complex multi-metal resources. Asian buyers may need to diversify supply sources, strengthen complex-feedstock processing capabilities, improve domestic recycling systems and secure more long-term supply agreements.