Constellium May Scrap EU Recycling Expansion as Scrap Shortage Bites
CSTM sits 77% above its 52-week low of $14.39 on light trading volume (0.1× avg).
Summary
CEO Ingrid Joerg says planned EU recycling projects may not proceed unless policymakers fix a scrap shortfall caused by exports. The European Commission recently dropped a proposed export duty on aluminium scrap, leaving the industry reliant on waste shipment rules that Constellium views as ineffective. The company had been evaluating projects across packaging, auto, and aerospace segments, potentially larger than the €130M Neuf-Brisach expansion. This uncertainty threatens future capacity growth and could pressure margins if scrap costs rise. Watch for EU waste rule finalization and any company decision on project go/no-go.
At the time of this announcement, CSTM was trading at $25.45 on NYSE in the Manufacturing sector, with a market capitalization of approximately $3.4B. The 52-week trading range was $14.39 to $36.99. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Reuters.