AlCircle: Latest secondary aluminium news update

China's aluminium scrap sector squeezed by tax crackdown, shrinking aluminium scraps margins

Fri, 26 Jun 2026 10:10:00 +0530

June saw notable impacts on the secondary aluminium market from both lower primary aluminium prices and tighter scrap supply amid tax policy changes. The refined-to-scrap spread narrowed to RMB 412/tonne, a fresh year-to-date low, encouraging some consumers to replace scrap with A00 ingots. With ongoing tax inspections across regions, the spread is likely to narrow further.

Aluminium price

In June, China's aluminium prices pulled back after fluctuating at high levels, with the aluminium spot price trading in a range of RMB 23,800-24,330 per tonne. Since early June, prices have weakened in a sustained oscillation. The aluminium recyclers faced difficulty in restocking due to supply shortage, holding low inventories with most remaining stocks purchased at high prices, leading to reluctance to sell. As aluminium prices fell, secondary aluminium smelters actively sought to build inventories at lower levels, but tight aluminium scrap availability and elevated prices forced smelters to purchase aluminium scrap at high prices.

Supply constraints were exacerbated by tighter tax regulation. The rollout of the Golden Tax Phase IV system and implementation of the Value-Added Tax Law in 2026 have strengthened detection of disguised transactions, fictitious individual suppliers, and excessive "reverse invoicing"; non-compliant reverse invoicing has been blocked. Consequently, "reverse invoicing" has been suspended or strictly restricted in Hubei, Anhui, Jiangxi, and other provinces.

Refined-to-scrap spread

Due to aluminium scrap shortages in June, the refined-to-scrap spread continued to narrow. As of June 23, the price gap between A00 primary aluminium ingot and bright aluminium wire scrap stood at RMB 412 per tonne, near its lowest level of the year. With aluminium prices softening, circulation of bright aluminium wire scrap tightened and aluminium scrap prices remained stubbornly high.

Delve deeper into the recycled aluminium and secondary aluminium market with our World Recycled ALuminium Market Analysis Industry forecast to 2032

As the spread narrowed below the RMB 600 per tonne threshold (indicating aluminium scrap is relatively expensive and economically less attractive), some secondary aluminium producers began increasing the proportion of A00 ingot usage as a substitute for bright aluminium wire. (Note: A spread ≤ RMB 600 per tonne suggests considering A00 ingot over aluminium scrap; > RMB 600 per tonne favours aluminium scrap. Bright aluminium wire scrap has a 98 per cent recovery yield.)

Demand side

Secondary aluminium alloy ingots (ADC12)

Despite weaker primary aluminium, secondary aluminium alloy ingot prices rose counter-seasonally. In East China, ADC12 increased from RMB 23,200 per tonne to RMB 23,600 per tonne in June alongside broad production cuts. According to Mysteel surveys, with reverse invoicing largely suspended in many regions, alloy ingot producers can only source tax-invoiced aluminium scrap. Some plants that previously relied on imported aluminium scrap were unable to do so due to losses based on overseas aluminium scrap. The domestic tax-invoiced aluminium scrap in China, however, was both expensive and scarce.

Since May, numerous ADC12 smelters have cut output due to raw material shortages, with some halting production entirely. The smelters' June aluminium scrap procurement volumes and in-plant aluminium scrap inventories declined M-o-M. It is expected that more regions will suspend reverse invoicing, implying further expansion of alloy ingot production cuts.

Secondary aluminium bars

The secondary aluminium bar market remained broadly weak in June. Since Q2, scarce aluminium scrap supply and tepid downstream demand have forced many aluminium bar mills to curtail the production. Entering the traditional off-season in June, downstream profile mills slowed their offtake, mostly buying on dips. Falling prices of molten aluminium bars prompted some profile makers to switch from secondary bars to molten aluminium bars, further eroding demand for secondary bars. A near-term recovery appears unlikely.

Secondary aluminium plate, strip and foil

June marks the traditional low season, with notable divergence across segments, where orders for common plates and sheets were weak domestically due to sluggish construction demand. Export orders, however, remained robust. The suspension of reverse invoicing has had limited impact on plate/sheet/foil enterprises. As aluminium prices declined, plate/strip/foil mills showed stronger willingness to build inventories on dips.

Outlook

Going forward, ongoing nationwide tax inspections and likely broader restrictions on reverse invoicing will keep raw material shortages unresolved at alloy ingot plants, sustaining production cuts and making ADC12 prices prone to rise with limited downside. Accelerated aluminium price drop will further narrow the refined-to-scrap spread, prompting increased substitution of aluminium scrap with aluminium.

Secondary aluminium bars will remain under pressure from the traditional off-season and competition from molten aluminium bars, with limited demand recovery in the near term. The plate/strip/foil sector will continue its internal divergence. Large export margins and strong overseas orders will sustain export momentum, while mills actively restock on price dips.

Explore the position of aluminium at the intersection of sustainability and strategy in Sustainability & Recycling: Aluminium's Dual Commitment

Note: This news is published under a content and exchange agreement with Mysteel

EU delays aluminium scrap export curbs till September: Will India seize the opportunity?

Fri, 26 Jun 2026 08:51:00 +0530

As reported by the industrial association European Aluminium and other related sources, the European Union’s implementation of measures to curb aluminium scrap export have been postponed till September, 2026. The update has emerged in the midst of the calls made by the European aluminium industry for pushing recycling efforts to promote circularity and decarbonisation.

The decision to limit aluminium scrap export was announced in November, 2025, scheduled to come into effect by spring 2026, as notified by Maros Sefcovic, European Trade Commissioner.

While industry sources believe that the measure was prompted by the difficulties in aligning competing priorities, the European Commission has not commented on the matter.

Delve deeper into the recycled aluminium and secondary aluminium market with our World Recycled ALuminium Market Analysis Industry forecast to 2032

Scrap leakage concerns flagged by the European Aluminium

Industry association European Aluminium, which has been advocating tighter controls on scrap exports, stated that overseas shipments from the EU climbed to a record 1.27 million tonnes in 2025, around 50 per cent higher than in 2019.

This is in line with the observation made by Mario Conserva, President of FACE (Federation of Aluminium Consumers in Europe), who described the situation as a strategic challenge for Europe’s industrial future.

“The current leakage of aluminium scrap, whereby we gift 1.2 million tonnes of this strategic resource to third countries annually, has reached a breaking point,” as they are raising the bar of competitiveness for Europe. “This volume represents nearly 25 per cent of Europe’s total recycling capacity, and we should improve it inside,” observed Mr Conserva.

In Q1 2026, the European Union exported 328,134 tonnes of aluminium scrap, 69 per cent of which was destined for Asian countries, according to Eurostat data.

In 2025, secondary aluminium accounted for about 35 per cent of global aluminium output, while the global aluminium recycling market is projected to grow from 39.35 million tonnes in 2025 to 41.14 million tonnes in 2026, reflecting the increasing importance of recycled metal in meeting future aluminium demand.

Paul Voss, Director General of European Aluminium, acknowledged industry concerns over the delay but maintained confidence that meaningful action would follow after the EU institutions resume work following their August recess.

“We're naturally impatient due to the scale and urgency of the problems, but this is about the next five years, not the next five weeks,” he said.

Similarly, in an exclusive interview with AL Circle, Emanuele Manigrassi, Director Climate & Energy at European Aluminium, warned that “Europe could face double pressure: higher costs for recyclers within the EU, while valuable scrap is pulled toward higher-paying international markets.”

European Aluminium also warned that the United Arab Emirates' decision to ban aluminium scrap exports, announced in June, could intensify pressure on European supplies. India, which traditionally sources about one-fifth of its scrap imports from Gulf countries, may increasingly look to Europe to meet demand.

Restriction stalled: An upside for India

Interestingly, the update has surfaced at a prime time for the Indian aluminium industry, which was facing a potential risk of aluminium scrap supply disruption. Being a nation whose 80 per cent of aluminium scrap demand is met by imports, India's Ministry of Commerce sought diplomatic discussions with the EU regarding its upcoming Waste Shipment Regulation (WSR).

India remained the largest importer of aluminium scrap from the EU in 2025 as well as during the first quarter (Q1) of 2026, closely followed by Thailand and China. In 2025, it imported 382,525 tonnes or 30 per cent of the EU's total shipments of aluminium scrap of 1,274,278 tonnes.

Having sourced 88,205 tonnes in Q1 2026, India accounted for 26.88 per cent of the EU’s cumulative outbound shipment of 328,134 tonnes, but still remained the top buyer from the European scrap market.

On June 8, the ministry flagged the issue in an official memorandum to the FT (Europe) Division. "Since India relies heavily on imports of high-quality scrap from developed countries such as the EU and USA, such restrictions could adversely affect the availability of quality secondary raw materials for Indian industry," the memorandum stated.

Addressing these concerns, Hervé Delphin, EU Ambassador to India, indicated that given the ongoing audit process for Indian recycling facilities, “there is no indication of anything negative.”

To learn about metal price risk management for recyclers, attend the webinar "Hedging for recyclers - Become an expert in 6 hours"

Like EU aluminium scrap-dependent countries, not everyone supports export restrictions. Recycling Europe, representing companies involved in collecting, shredding and processing end-of-life products such as vehicles, has voiced strong opposition. The organisation argues that only about 20 per cent of European aluminium scrap is exported, much of it comprising lower-grade material that cannot be efficiently processed within the EU.

According to the group, restricting exports could weaken the recycling sector by discouraging investment and reducing processing activity, potentially leaving larger volumes of recyclable aluminium uncollected and untreated.

Deferral announcement of aluminium scrap export ban might, therefore, be an opportune window for India to fill its aluminium scrap inventory to the brim until any new updates appear on the EU’s WSR framework.

Read all the latest developments in Europe’s aluminium recycling industry: Click here

Aluminium scrap supply at risk? India seeks EU talks amid new export restrictions

Thu, 25 Jun 2026 07:23:00 +0530

India's Ministry of Commerce is seeking diplomatic discussions with the European Union (EU) regarding its upcoming Waste Shipment Regulation (WSR). It was prompted by concerns that the new framework could restrict the flow of recyclable materials, including aluminium scrap, to non-OECD countries.

As per official documents reviewed by the Business Standard, the Indian Ministry of Commerce assessed the potential impact of the regulation, effective from 2027, which aims to secure recyclable resources within the EU's territories.

In an internal memorandum dated June 8, the Department of Commerce notified the FT (Europe) Division that the measure could affect India's access to quality secondary raw materials.

Delve deeper into the recycled aluminium and secondary aluminium market with our World Recycled ALuminium Market Analysis Industry forecast to 2032

"Since India relies heavily on imports of high-quality scrap from developed countries such as the EU and USA, such restrictions could adversely affect the availability of quality secondary raw materials for Indian industry," the memorandum stated.

The concern bears significance for the aluminium sector, wherein imported aluminium scrap is a crucial feedstock. India remains heavily reliant upon overseas sources, with 80-85 per cent of imports meeting its domestic aluminium scrap demand.

Out of the total aluminium scrap volume of 2.02 million tonnes sourced from the world in 2025, the EU accounted for 18 per cent of the import total.

As of 2025, India imported 366,000 tonnes of aluminium scrap from the EU, which has risen year-on-year by 26.64 per cent over the 289,000 tonnes imported in 2024.

Moreover, India remained the largest importer of aluminium scrap from the EU during the first quarter (Q1) of 2026, having sourced 88,205 tonnes of aluminium scrap.

Industry bodies have also voiced concerns. The Material Recycling Association of India (MRAI) warned that the new EU requirements could subject Indian recycling facilities to extensive audits and additional compliance obligations, increasing operational costs for recyclers.

MRAI further recommended a series of domestic policy measures to reinforce the recycling industry, such as the removal of the 2.5 per cent import duty on aluminium scrap, Goods and Services Tax (GST) reduction on metal scrap from 18 per cent to 5 per cent, exemption of imported non-ferrous scrap from proposed Extended Producer Responsibility (EPR) requirements, and the removal of the mandatory Pre-Shipment Inspection Certification (PSIC) system.

The Engineering Export Promotion Council (EEPC) has extended support for India’s talks with European authorities to ensure the nation’s uninterrupted access to scrap supplies.

Explore the position of aluminium at the intersection of sustainability and strategy in Sustainability & Recycling: Aluminium's Dual Commitment

India imports approximately 9 million tonnes of ferrous scrap, 4 million tonnes of non-ferrous scrap and 1.5 million tonnes of paper scrap each year, highlighting the country's dependence on international recycling material flows.

Seeking to ease industry concerns, Hervé Delphin, EU Ambassador to India, indicated that the ongoing audit process for Indian recycling facilities has so far produced encouraging results.

Delphin mentioned, "As far as we are concerned, there is no indication of anything negative.”

As Europe moves to strengthen resource retention under its circular economy strategy, the outcome of future India-EU discussions could play an important role in shaping the availability of scrap feedstock for India's growing recycling and secondary aluminium industries.

Trading aluminium across borders? Find out the exact cost you need to bear for the embedded carbon in the product by using this CBAM calculator.

Primary vs. Secondary Aluminium: Your Scrap is worth more than your Smelter

Thu, 25 Jun 2026 05:30:00 +0530

How scrap leakage, CBAM tariffs, and impurity science are redrawing the economics of aluminium

EXECUTIVE SUMMARY:

The margin threat: Aluminium scrap prices have surged to over 90 per cent of the LME primary ingot price, wiping out traditional arbitrage and forcing a total procurement reset.
The CBAM reality: Secondary post-consumer scrap carries a zero upstream carbon burden, bypassing the incoming €75.36 per tonne European border taxes that will cripple high-carbon primary imports.
The technology fix: Advanced photonics and "Design for Recycling" (DfR) architectures are finally untangling the dirty alloy problem, allowing secondary metal to bypass primary dilution entirely and capture 100 per cent of future margin growth.

European remelters are watching their margins evaporate. According to Secretary General of FACE, Mario Conserva, aluminium scrap now frequently trades at more than 90 per cent of the London Metal Exchange primary ingot price - a level that makes secondary production economically indistinguishable from primary. Meanwhile, the European Union's Carbon Border Adjustment Mechanism (CBAM) is preparing to levy crippling border taxes on high-carbon primary imports. If your procurement strategy is still calibrated to a world where scrap is cheap and carbon is free, you are already behind.

This is not a passing trend. It is a structural reconfiguration. The global aluminium value chain is splitting into two distinct economies: one punished by energy costs and carbon tariffs, the other potentially rewarded by them. The dividing line runs directly through your scrap stockpile.

To stay ahead of these unprecedented market shifts and protect your procurement margins, accurate intelligence is your most vital asset. Register for free with AL Circle today to read the rest of this exclusive analysis, track the evolving 'green premium,' and navigate the supply chain reconfiguration before the definitive carbon regime takes full effect.

The carbon bill is coming. And it is not small

The thermodynamics of aluminium production have always favoured secondary metal. Producing one tonne of primary aluminium via the Hall-Héroult electrolytic process consumes roughly 14,000 kilowatt-hours of electricity. Remelting the equivalent tonne of scrap requires approximately 500 kilowatt-hours. That is a 97 per cent energy saving. It is not a rounding error but a structural cost advantage that compounds with every tonne processed.

At current industrial electricity rates, that differential translates to roughly USD 1.47 saved per kilogram of metal produced. For a mid-scale remelter turning out 200,000 tonnes annually, that is a theoretical operating advantage exceeding USD 290 million before a single border tariff is applied.

Post-consumer scrap carries zero upstream carbon burden under current CBAM methodology. It is considered carbon-neutral by definition, since the immense energy required for its original production was already accounted for in its first lifecycle. That single accounting convention is about to determine which global processing routes survive the next decade.

The European Union framework is currently calculating carbon costs for aluminium imports based on embedded emissions. Primary aluminium from coal-dependent Chinese and Indian smelters faces massive financial exposure. Secondary remelters using post-consumer scrap face none. As global pricing agencies actively embed CBAM costs into aluminium billet premiums, that pricing divergence is permanent.

Also read: Primary vs recycled AL: Which will dominate as Europe’s automotive sector heads toward yearly 4.2Mt of aluminium demand by 2030?

The scrap leakage crisis: Europe is funding its competitors

Europe recently generated approximately 7 million tonnes of aluminium scrap in a single year, a figure reflecting a decade of investment in municipal collection infrastructure. The beverage can return rates across Germany and Scandinavia are genuinely world-class. On paper, Europe is a recycling success story.

In practice, roughly 1.2 million tonnes of those scrap leaves Europe annually. If that material were retained and processed domestically, European remelters could reduce the bloc's dependence on imported primary aluminium by nearly 24 per cent. Instead, it flows east, towards markets with the massive smelting scale and aggressive trade policies required to make full use of it.

The mechanics of this leakage are purely financial. Global demand for high-grade scrap has driven European domestic prices up by 80 per cent since 2019. At these inflated rates, a European remelter buying domestic scrap and competing against a Southeast Asian operator with cheaper energy and zero regulatory overhead is fighting a losing arbitrage.

The destination countries are not passive recipients. India applies an import duty on aluminium scrap that protects its domestic industry. Malaysia enforces an export tariff. China, the world's largest scrap importer at 2.3 million tonnes annually, levies a 15 per cent tariff on its own scrap exports. These are deliberate resource security strategies designed to ensure a one-way flow of global resources into their recycling ecosystems.

The geopolitics of primary: Where supply shocks are born

China currently produces roughly 43 million tonnes of primary aluminium annually, accounting for nearly half of global output. The Gulf states supply most of the remainder. The consequence for European and North American manufacturers is a structural dependence on primary metal originating in jurisdictions that directly compete with them.

The fragility of this dependence is now being stress-tested by severe upstream shocks. In West Africa, Guinea-Conakry has established itself as the absolute linchpin of raw materials, shipping a staggering 183 million tonnes of bauxite. However, the Guinean government recently moved to implement strict export volume cuts to stabilise market pricing. With nearly 70 per cent of Guinean bauxite flowing directly to China, these cuts effectively concentrate already-heavy Chinese market control and raise supply risks for Western buyers.

In the Middle East, the widening Iran conflict has effectively militarised the Strait of Hormuz, a critical maritime chokepoint for primary aluminium exports from Gulf smelters. Maritime insurance premiums have surged. Liquefied natural gas routes powering regional smelters face direct disruption. The result is a physical delivery premium that has decoupled from the base LME price.

Western sanctions add a third pressure point. Banned from Western LME warehouses, Russian ingot is being redirected into Chinese and Asian markets at heavily discounted rates. This rerouting rewires pricing benchmarks and proves that reliance on imported primary metal is a fundamental geopolitical liability.

To know the critical role of recycled aluminium from industry leaders to drive the sustainability goal, read our magazine: Sustainability & Recycling: Aluminium's Dual Commitment

The dirty alloy problem: Why secondary is not simply primary

The thermodynamic and carbon arguments for secondary aluminium are compelling. The metallurgical reality is vastly more complicated. Understanding this science is the difference between building a sustainable circular model and falling into a downcycling dead-end.

Aluminium in its molten state is an aggressive chemical solvent. It absorbs iron, copper, silicon, and zinc from contaminated scrap streams. Once those tramp elements breach the melt, they do not leave easily. Iron is the most damaging. During solidification, iron precipitates as brittle intermetallic needle phases. These act as severe stress concentrators that initiate microcracks under mechanical load, degrading the ductility and fatigue resistance of the metal.

The traditional industry response was dilution: blend contaminated secondary metal with massive volumes of high-purity primary ingot, or downgrade it into heavy casting alloys. For decades, surplus demand for internal combustion engine blocks absorbed this downcycled material. The shift to electric vehicles has removed most of that demand. Battery-electric powertrains require no engine blocks, meaning the downcycling sink is closing permanently.

The counterintuitive finding from a peer-reviewed analysis of 6181 automotive sheet (DOI: 10.3390/ma16206778) is that high-scrap-content variants actually outperform primary on raw strength. Tramp copper and magnesium absorbed from the scrap stream function as unintended solid-solution strengtheners, adding roughly 20 MPa to yield and tensile values.

The failure mode is not strength; it is dynamic formability. Secondary 6181 exhibits a significantly lower work-hardening exponent. This means strain localises earlier during complex deep-drawing operations. The automotive panel thins prematurely, then fractures. Modern OEM stamping lines running at high speed simply cannot tolerate that metallurgical variability.

Solving this is the focus of the "Science of Dirty Alloys" research programme. This materials engineering paradigm abandons the goal of purifying secondary metal to primary chemistry. Instead, it designs new alloy families that actively tolerate controlled contamination. The approach uses applied strain during thermomechanical processing to trap tramp elements at benign lattice sites, converting a metallurgical liability into a microstructural feature.

The sorting revolution and design for recycling

All the alloy engineering in the world is irrelevant if incompatible alloy families enter the melt together. Mixed scrap is the primary source of tramp contamination. Historically, separating individual alloy grades from shredded end-of-life vehicles was not economically viable at scale.

Advanced photonics are changing that economics at pace. Laser-Induced Breakdown Spectroscopy (LIBS) systems operate by firing a high-energy laser at each scrap piece as it passes on a conveyor. The laser vaporises the metal to generate a microplasma. Spectrometers instantly read the light frequencies emitted as the plasma cools, quantifying the exact chemical signature of the alloy before pneumatic jets divert the piece into its designated stream.

The consequence is true series-to-series separation. Instead of a mixed ingot requiring primary dilution, a LIBS-sorted melt arrives at the furnace already in-specification. The primary metal cost previously required for melt correction is eliminated, and the CBAM tariff on that primary import is effectively bypassed.

However, relying solely on lasers to untangle end-of-life chaos is a reactive measure. Proactive automakers are adopting Design for Recycling (DfR). Instead of multi-alloy assemblies that produce irreversibly contaminated shred, a DfR vehicle body uses a single, compatible alloy family throughout. The structural aluminium that goes into a vehicle today will exit as scrap in 12 to 15 years. DfR ensures that future scrap streams are inherently pure before they ever reach the shredder.

Attend the third edition of webinar on "Hedging for Recyclers" to learn metal price risk management for recyclers

The ultimate question: Will secondary cannibalise primary?

Evaluating this structural shift forces a definitive conclusion: Will secondary aluminium completely eradicate the need for primary smelting?

The metallurgical and economic answer is No, but it will cannibalise the margin.

Primary aluminium will remain an absolute necessity for two reasons. Firstly, global macroeconomic demand, particularly in developing nations building net-new power grids and infrastructure, requires a sheer volume of metal that the current scrap pool cannot satisfy. Secondly, until DfR and LIBS sorting reach 100 per cent global saturation, a steady baseline of high-purity primary metal will be required to dilute tramp elements in complex casting operations.

However, the nature of primary production is being permanently downgraded. Primary aluminium is transitioning from being the foundational driver of industry profit into a heavily taxed, commoditised "sweetener" used strictly to correct secondary melts.

The secondary sector is where 100 per cent of the future margin growth resides. By avoiding the multi-billion-dollar capital expenditure of greenfield smelters, bypassing the $1.47 per kilogram energy penalty, and entirely circumventing the €75.36 per tonne CBAM carbon tax, secondary remelters command a structural financial advantage that primary producers simply cannot match. The future of the value chain does not belong to the miner; it belongs to the recycler.

Note: This is exclusive coverage by AL Circle and may not be reproduced, republished or shared without prior permission.

Disclaimer: The opinions, information, claims, references, and images presented here are those of the author alone and AL Circle holds no responsibility.

EGA undrapes UAE's largest aluminium recycling plant, boosting low-carbon production and circular economy goals

Wed, 24 Jun 2026 12:35:00 +0530

For years, the UAE has been exporting a quietly valuable resource: its own aluminium scrap. Collected domestically, that scrap has largely been shipped overseas for processing, stripping the national economy of the added value it could generate. That dynamic shifted decisively this week when Emirates Global Aluminium (EGA) officially opened the Al Taweelah recycling plant — a 185,000-tonne-per-year facility that now makes the Abu Dhabi-based producer the largest consumer of aluminium scrap inside the UAE.

The opening was attended by Her Excellency Dr Amna bint Abdullah Al Dahak, Minister of Climate Change and Environment; Her Excellency Dr Shaikha Salem Al Dhaheri, Secretary General of the Environment Agency – Abu Dhabi (EAD), EGA's Chairman Homaid Al Shimmari, Vice Chairman His Excellency Saeed Al Tayer; and senior members of EGA's Board and management team.

Delve deeper into the recycled aluminium and secondary aluminium market with our World Recycled ALuminium Market Analysis Industry forecast to 2032

Here’s a note on what Al Taweelah actually does, and why it's different

The plant processes post-consumer as well as some pre-consumer aluminium scrap into premium-grade billets and T-bars sold under EGA's RevivAL product brand.

But Al Taweelah is not simply a scrap-melting operation. EGA has built product flexibility into the facility from the ground up. Recycled metal can be blended with solar-powered primary aluminium to produce CelestiAL-R, or with nuclear-powered primary aluminium under the MinimAL-R label — giving EGA a suite of certified, low-carbon products that can meet the increasingly stringent carbon requirements of customers in Europe, Asia, and North America.

In a market where buyers in the automotive, construction, and packaging sectors are under growing pressure to document the carbon intensity of every tonne of aluminium they purchase, EGA's ability to offer recycled, solar-blended, and nuclear-blended aluminium from a single integrated platform is a sigh of relief.

A government priority

The presence of the UAE's Minister of Climate Change and Environment at the inauguration was not ceremonial. Her Excellency Dr Amna bint Abdullah Al Dahak used the occasion to frame aluminium recycling as a pillar of national policy, stating “Recycling is the cornerstone of the UAE’s Circular Economy Policy, which aims to transform the nation into a global hub for green development by shifting from linear to circular production and consumption, enhancing resource efficiency, and minimising waste. Aluminium represents one of our greatest opportunities to drive this transition from a linear to a circular model of production. It is infinitely recyclable, protecting our ecosystems while fuelling a sustainable, low-carbon economy. Recycling aluminium waste requires up to 95 per cent less energy compared to producing new primary aluminium from raw ore, saving significant energy and reducing greenhouse gas emissions.”

Book your seat for the free-to-attend webinar, "Autonomous furnace tending in aluminium cast houses: Improving safety, productivity and yield". Limited slots available

Built at scale and delivered safely

The sheer scale of Al Taweelah's construction reflects EGA's ambition. The project consumed over 26,300 cubic metres of concrete (equivalent to filling more than ten Olympic swimming pools) and more than 4,600 tonnes of structural steel, a volume approaching two-thirds of the iron mass of the Eiffel Tower.

The entire build was completed across 4 million working hours without a single lost-time injury, a safety record that deserves recognition alongside the technical achievement.

Production began in February 2026, though final commissioning was briefly interrupted following an Iranian attack on Khalifa Economic Zone Abu Dhabi on 28 March. Work resumed in April and cast metal production restarted in early May. Ramp-up to the plant's full 185,000-tonne annual capacity is expected within six months, contingent on scrap availability — a caveat worth watching, given ongoing tightness in quality scrap supply across the Middle East.

EGA's CEO on industrial strategy

Abdulnasser Bin Kalban, Chief Executive Officer of EGA, was direct about what Al Taweelah represents beyond recycling, “The inauguration of Al Taweelah recycling plant is a major milestone in EGA’s development of a global aluminium recycling business. This new plant turns aluminium waste generated in the UAE and elsewhere into new aluminium that makes modern life possible around the world. With this project, we have added a new industrial activity to EGA’s operations in the UAE, in line with Make it in the Emirates and the UAE’s Operation 300bn industrial growth strategy.”

The reference to Operation 300bn, the UAE's plan to grow the industrial sector's contribution to GDP to AED 300 billion by 2031, places Al Taweelah firmly within a broader economic narrative.

Explore the position of aluminium at the intersection of sustainability and strategy in Sustainability & Recycling: Aluminium's Dual Commitment

A global recycling platform taking shape

Al Taweelah is the most visible piece of what is becoming a genuinely global secondary aluminium operation for EGA. The company now holds recycling capacity exceeding 400,000 tonnes per year across three continents, with a further 200,000 tonnes under active development.

In Germany, EGA Leichtmetall is undergoing an expansion that will grow its footprint more than six-fold. A second plant near Hannover will add 150,000 tonnes of annual capacity and is scheduled for completion in 2028. In the United States, EGA Spectro Alloys in Minnesota wrapped up a 65,000-tonne expansion in 2025 and is already working through the regulatory and construction steps for a second phase that would add another 35,000 tonnes by 2027. And in Italy, EGA has announced plans to acquire an 80 per cent stake in Eco Green, a domestic recycling company, pending regulatory clearance.

Taken together, these moves are clearly calculated geographic diversification, spreading recycling capacity across key consuming markets rather than centralising it in the Gulf.

The grade of finished products made from recycled aluminium raw materials is improving year by year, says SIMVIC

Tue, 23 Jun 2026 09:15:00 +0530

This exclusive interview with Simvic highlights the technical advancements in shredding and sorting. SIMVIC explains iron contamination is the major challenge in scrap recycling. While magnetic separation helps remove iron, aluminium attached to the iron fraction can result in direct aluminium loss. SIMVIC further explains effective recycling solutions must begin with a clear understanding of the customer’s local feedstock conditions. Factors such as lifestyle patterns, waste collection practices and regional material characteristics play a critical role in determining the composition of raw material and the technology required to process it efficiently. According to SIMVIC, the overarching trend in today's recycling market is towards greater refinement. The grade of finished products made from recycled raw materials is improving year by year, which places higher demands on recycling operators.

To know more such exclusive insights into recycling techniques, along with market, dynamics, read the full interview.

AL Circle: Simvic is known as an integrated ‘Plant Builder’ rather than just a machinery supplier. When designing a 4–200 TPH recycling facility, how do you engineer the synergy between shredding, sensor-based sorting, and Eddy Current Separation to maximize both metal recovery rates and final product purity for complex feeds like Zorba or Twitch?

SIMVIC: When planning or designing a recycling plant, every process step is closely interlinked - like links in a chain. A problem in any single link can directly cause the entire chain to break. Starting with the shredding stage: if the shredding particle size is not chosen appropriately, it can lead to a host of downstream issues.

For example, if the shredding particle size is too large, many composite materials will remain physically joined - such as aluminium pieces with iron screws still attached. When such material enters the Zorba or Twitch stream, it can cause iron contamination. Conversely, if such a composite is pulled out by a magnet and ends up in the iron fraction, that results in aluminium loss. Therefore, based on our extensive experience and the actual characteristics of the customer's feed material, we select the most suitable shredder type, hammer configuration, screen size, and other parameters to ensure that, from the very beginning, the material is reduced to the optimal particle size for subsequent separation stages.

If the shredding particle size is too fine, it reduces throughput and increases energy consumption per tonne, directly raising the customer's operating costs. At the same time, it generates a large amount of fine particles and dust, which lowers the yield of saleable products - again representing a significant loss.

In the field of sorting, Simvic's design team possesses the highest international standards of design capability. The majority of our team members have overseas professional backgrounds. Beyond their technical expertise, they are also able to communicate directly with customers in foreign languages. Our team can work in English, Japanese, German, Spanish, Polish, and other languages, enabling seamless discussion of technical details with clients. We have sorting specialists on our team who have worked for nearly 20 years at a top German sorting equipment supplier. As a result, Simvic's understanding of sorting technology is fully aligned with that of the sorting equipment manufacturers themselves.

Although we do not manufacture sorting equipment ourselves, our deep understanding of the entire equipment supply chain allows us to select the best equipment for each stage. Equipment manufacturers, constrained by their own business models, tend to choose only the machines they produce themselves for every stage. However, no single manufacturer produces all of its own equipment at a best-in-class level for every application — and that limitation can create bottlenecks in sorting performance.

AL Circle: Many recyclers struggle with inconsistent feedstock quality and fluctuating market prices. As a Plant Builder serving mid-to-large scale operators, how does Simvic design flexible sorting circuits that allow clients to adjust output specifications easily while ensuring stable CAPEX and OPEX for sustainable ROI?

SIMVIC: During the preparatory phase of every project, Simvic analyses the customer's local feedstock conditions — taking into account factors such as local lifestyle habits, waste collection methods, and various other elements — to determine the specific characteristics of the customer's raw material. This enables us to accurately define the overall framework for the system design, including whether auxiliary equipment such as pre-shredders or shears are required. We then thoroughly assess the types and forms of impurities present in the customer's feedstock.

Next, based on how the customer intends to use the end products - for example, whether they plan to resell the material directly or feed it into their own melting furnace - as well as the specific quality requirements of the target market, we design the corresponding process accordingly. For instance, if the customer can only sell their output as Zorba, there is no need to remove heavy metals to upgrade it to Twitch. The best sorting solution is not necessarily the one that delivers the highest possible purity - it is the one that delivers the product that best meets the customer's actual needs.

At Simvic, we draw on many years of design experience and combine it with advanced European sorting concepts. What we deliver is not simply a turnkey plant design - it is a complete, customised processing solution tailored specifically to the customer, addressing every detail from start to finish.

AL Circle: Demand for secondary aluminium is rising, but recyclers are facing pressure from limited scrap availability, quality inconsistency and stricter end-user specifications. How do you see demand for advanced sorting and metal separation systems growing over the next few years, and which recycling segments are driving this demand most strongly?

SIMVIC: The overarching trend in today's recycling market is towards greater refinement. The grade of finished products made from recycled raw materials is improving year by year, which places higher demands on recycling operators. For example, in the past, the industry discussion focused on Zorba and Twitch. Today, more attention is being paid to the separation of cast and wrought aluminium, and even to the fine-sorting of aluminium by alloy series using LIBS technology.

By the same logic, sorting requirements for materials such as scrap steel and scrap copper are also becoming increasingly stringent.

Simvic works closely with its customers to understand their needs, while continuously monitoring developments in sorting equipment technology. As a plant builder, we consistently integrate new technologies and equipment into our designs, ensuring that our processing lines remain up to date with industry advancements. New sorting technologies give rise to new requirements, and as a plant builder, we are able to design the entire line more precisely to ensure that new technologies can perform at their maximum effectiveness.

AL Circle: China is already a major force in aluminium recycling, but its scrap processing sector is also becoming more technology-driven. How do you assess the current growth of scrap sorting machinery in China, and what gap is Simvic trying to address compared with domestic and international competitors?

SIMVIC: As mentioned above, the current requirement for recycled products is high-quality usage to produce high-grade finished goods. For example, recycled material from architectural aluminium (window frames, etc.) should be used to produce 6063 aluminium billet, rather than being downgraded to basic primary aluminium ingots.

Simvic leverages its international background while combining it with domestic advantages, forging a modern path that integrates Chinese and international strengths. We introduce and learn from advanced technologies developed in developed countries, while also adapting them to the actual conditions in China - making the technology and equipment work for the customer, rather than forcing the customer to make compromises for new technologies or equipment.

For overseas markets, Simvic relies on the strong manufacturing capabilities of China. Our product quality is now approaching the world's top manufacturing levels. At the IFAT trade fair, our shredders received significant recognition from the CEO and Technical Director of Lindemann, a leading player in the industry. Praise from our peers is the greatest affirmation of our many years of effort. Compared with established developed countries, we are very close in terms of quality and technology, while also maintaining a competitive edge through careful cost management and lean operations.

Furthermore, we never rest on our laurels. For every piece of equipment we produce, we maintain a corresponding database. Every customer feedback is taken seriously, and every detail receives special attention. We are continuously making adjustments to our products, correcting any imperfections, and adapting equipment designs in real time to changing market demands. Our designs are constantly being refined and improved. The practice of manufacturing equipment for decades based on a single, unchanged drawing will never happen at Simvic.

AL Circle: Beyond China, which markets are most important for Simvic’s expansion? Are you seeing stronger demand from regions such as Southeast Asia, the Middle East, Europe or North America, where recyclers are under pressure to improve scrap recovery, reduce metal losses and meet tighter quality standards?

SIMVIC: As we discussed earlier, Simvic's greatest strength is its international focus. Overseas markets have always been our primary market. In developed countries across Europe and North America, we have many customers and reference plants. In recent years, with the economic improvement in previously less developed regions such as Southeast Asia, the Middle East, India, and Africa, demand in these areas has also risen significantly.

Due to differences in material sources and downstream usage conditions, recycling plants in these regions cannot simply copy and paste the European or North American model. Instead, new designs must be adapted to local conditions. This is precisely where Simvic's unique advantage lies.

AL Circle: Automation is becoming central to modern recycling plants. How is Simvic integrating automation into its machinery, and do your systems include features such as AI-based recognition, remote monitoring, automatic adjustment, data analytics or predictive maintenance?

SIMVIC: Yes, automation is a major trend for the future, and Simvic introduced this concept into our design philosophy at a very early stage.

Integrated plant-wide control, real-time status monitoring of individual equipment units - these have long since become standard features for us.

In addition, our intelligent design analyses the operating conditions of the shredder - such as instantaneous current draw - and feeds this information back to the operator, allowing them to adjust the feed rate at any time to ensure smooth operation of the entire line.

We also have many new designs that make the entire sorting plant more automated, reducing dependence on operators.

AL Circle: What are the biggest technical challenges in aluminium scrap sorting today, and how is Simvic preparing its technology roadmap to solve those challenges?

SIMVIC: The main challenge today is that the sorting equipment and technologies currently available on the market cannot fully meet the ever-increasing demands for sorting precision and the emergence of new sorting requirements.

Although Simvic is not a manufacturer of sorting equipment, we act as a conduit for sorting technology. We constantly monitor new developments in the market, maintain close contact with equipment manufacturers, and promptly integrate new technologies into our designs - allowing our customers to benefit from the new momentum driven by technological advances as soon as possible.

From our perspective, we continuously assess what adjustments we need to make - both as a manufacturer of shredding equipment and as a provider of complete plant solutions - in response to new technologies. This ensures that we always keep pace with the times.

Can Europe secure 1Mt+ aluminium scrap for circularity goals while maintaining global competitiveness?

Mon, 22 Jun 2026 12:22:00 +0530

Europe’s aluminium recycling industry is entering a defining phase. Demand for low-carbon aluminium is climbing rapidly across automotive, packaging, construction and clean energy sectors, while policymakers continue to champion circularity as a key pillar of climate action. Yet, despite recycling rates above 80 per cent in several segments and continued investment in recycling infrastructure, a rising share of valuable aluminium scrap is still leaving the continent.

That paradox is becoming one of the industry’s biggest focal points. Across the value chain, we notice a growing regard for Europe’s recycling success, which will be measured not only by how much scrap it collects, but by how much of that material it can keep, process and turn back into aluminium products at home.

As competition for low-carbon materials intensifies, can Europe hold on to one of its most strategic resources?

Recently, insights shared by leading industry experts reveal a sector navigating a complex mix of opportunities and challenges — from scrap leakage and regulatory uncertainty to rising energy costs, carbon policies and technological innovation — while striving to strengthen Europe's position in the global circular aluminium economy.

Delve deeper into the recycled aluminium and secondary aluminium market with our World Recycled ALuminium Market Analysis Industry forecast to 2032

Recycling success story overshadowed by scrap leakage

The European aluminium industry’s strongest concern today is not recycling performance but scrap availability. Several experts have highlighted an uncomfortable reality: Europe is collecting substantial volumes of aluminium scrap, but an increasing share of that material is being exported before it can be processed domestically.

Mario Conserva, President of FACE (Federation of Aluminium Consumers in Europe), described the situation as a strategic challenge for Europe’s industrial future.

He advocated for “adoption of a decisive and structural trade measure at the EU level”, such as “high export tariff (of 10 per cent) on aluminium scrap,” emphasising the need for secondary aluminium retention within Europe.

Being “a strategic raw material that Europe does not have in sufficient supply,” this is essential as “scrap prices in the EU have risen by almost 80 per cent since 2019,” and traded over “90 per cent of the LME ingot price.” Hence, “the economic margin for converting scrap into secondary ingot collapses, undermining the viability of EU remelters and refiners’ prices; this is translating into postponed investments, curtailed recycling capacity and plant closures.”

In line with Mr Conserva’s opinion, Tom Jansen, VP and Head of Segments for TOMRA Recycling, stressed that “Europe must treat domestic scrap as a strategic asset.”

He warned that when high-value scrap leaves the region, European recyclers are left competing for limited feedstock, as “The main issue is less about the volume and more about the quality of the material remaining in Europe.”

According to him, Europe needs to move beyond viewing scrap exports as ordinary commodity trade and recognise them as the loss of a valuable low-carbon resource.

At the same time, he believes the solution lies not only in restricting exports but also in improving scrap quality and recovery rates. “Quality should be the priority. Expanding capacity is ineffective if the feedstock is poor,” he explained.

He added that greater investment in advanced sorting technologies, collection systems and material recovery would help keep more aluminium within Europe's circular economy while improving recyclers’ competitiveness.

Additionally, Karl Hoffmann, Director of Marketing & Sales at Hertwich Engineering, described the European aluminium recycling market as being at a critical juncture, shaped by both opportunity and constraint.

According to Hoffmann, “the European aluminium recycling market is currently going through an exciting yet challenging phase, "driven by growing demand from sectors seeking low-carbon aluminium solutions. However, he cautioned that the industry is simultaneously facing pressure from the continued export of valuable scrap resources.

The European Union exports 1.2 to 1.3 million tonnes of scrap during a year, which reflects 15 per cent of the volume collected domestically. In Q1 2026, the European Union exported 328,134 tonnes of aluminium scrap, 69 per cent of which was destined for Asian countries, according to Eurostat data.

Europe recovered around 7 million tonnes of aluminium scrap in 2025. Recovery rates remain impressive, with about 95 per cent of aluminium reclaimed from end-of-life vehicles and building applications, and 76 per cent recovered from used beverage cans. However, despite policy measures bringing about strong collection, the industry’s underlying challenge remains unresolved since the recovered scrap continues to be exported.

In light of this, the European Parliament has approved new trade rules under the 2025 EU-US trade agreement.

The EU can suspend tariff preferences granted to the US if Washington continues imposing tariffs above 15 per cent on EU steel and aluminium derivative products beyond December 31, 2026. The mechanism would allow the EU to act if rising imports from the US threaten the competitiveness of Europe’s aluminium industry, amongst others.

Why does scrap continue to leave Europe?

Demand for recycled aluminium climbed from 6.6 million tonnes in 2021 to 8 million tonnes in 2025, marking a growth of 21.1 per cent. The increase was driven by tighter recycled-content requirements, decarbonisation initiatives, and the wider use of recycled aluminium across the automotive, construction and packaging sectors.

Adding another perspective to it, Ivan Mayorov of CANCOM Austria AG pointed out that scrap exports are not driven solely by price differences but also by inefficiencies within the market itself. He noted that “aluminium scrap leakage is also often driven by information asymmetry and inefficient market matching,” suggesting that recyclers and consumers are not always effectively connected within Europe.

Mayorov argued that improving transparency and digitalisation across the scrap value chain could help retain more material within the region without necessarily resorting to restrictive trade measures.

According to him, “better visibility into available materials, quality and potential use cases, which reduces the likelihood that valuable scrap is exported or underutilised,” while more efficient market platforms can reduce unnecessary exports driven by supply-demand mismatches.

The CANCOM-RecAL partnership has accelerated material analysis and screening while cutting energy use by up to 95 per cent through recycled aluminium, earning RecAL the 2025 ÖGUT Environmental Award for circular economy innovation.

Technology as part of the solution

The challenge of limited scrap availability places greater importance on technology.

Jason Zhang, International Business Director of Luyou Equipment, highlighted that Europe's recycling sector faces a unique combination “where scrap availability is limited but recycling rate requirements are high.”

Zhang is confident that "Luyou Equipment is highly suitable" for the European market, with its ability to “separate high-value materials,” maintaining compliance standards with “EU CE certification” of many of its products and “high reliability and low operational losses,” processing “every tonne of scarce scrap material.”

He explained that recyclers can no longer rely solely on increasing scrap volumes and must instead focus on extracting more value from the material already available. Zhang pointed out the core challenges faced by the European market, viz., “limited scrap, high electricity costs, high labour costs, and strict environmental regulations.”

Luyou incorporates advanced sorting, shredding and separation systems, enabling recyclers to achieve higher purity levels, lower contamination rates and better metal recovery from increasingly complex scrap streams.

Join our exclusive webinar 'Hedging for recyclers - Become an expert in 6 hours' to stay ahead in the competitive market

Energy costs continue to weigh on recyclers

While scrap availability remains a central concern, rising energy costs continue to challenge European recyclers.

Highlighting broader concerns with power costs as the main hurdle in the aluminium value chain, Karl Matthiasson, a visionary leader at the helm of DTE, warned that energy prices are likely to remain elevated.

"Energy costs will continue to be high and, if anything, pressures facing producers and recyclers will intensify," he stated.

Similar concerns were raised by Mr Ruggero Zambelli and Mr Paolo Gamberini of Raffmetal.

They observed, “Reducing energy intensity is a key priority for us given the inherently energy-intensive nature of aluminium melting.”

ETS, CBAM and policy pressures reshape competitiveness

Another challenge is the growing cost burden facing European recyclers under the revised EU Emissions Trading System (ETS).

Emanuele Manigrassi, Director Climate & Energy at European Aluminium, warned that "Europe could face double pressure: higher costs for recyclers within the EU, while valuable scrap is pulled toward higher-paying international markets."

Discussing the broader policy landscape, Manigrassi argued that recyclers are being exposed to rising ETS and CBAM-related costs while scrap and recycled aluminium remain insufficiently covered by existing trade mechanisms. This creates “a clear risk of structural disadvantage for European recyclers.”

As Manigrassi summed up, “Europe is asking industry to recycle more aluminium, retain more strategic raw materials, and build a more circular, low-carbon economy.” Yet without better alignment between ETS, CBAM and recycling realities, achieving circularity goals may become significantly more difficult.

European Aluminium, therefore, is calling for “a dedicated benchmark design for aluminium recycling post-2030 and, in the short term, a freeze of the fallback benchmarks at 2021-2025 levels until 2030.”

Along those lines, Glen Hodgson, founder of independent consultancy Free Trade Europa, questioned whether current policy frameworks fully address industry realities.

According to Hodgson, “CBAM is designed for an idealised future rather than today's reality, and that gap undermines its effectiveness.”

He argued, “When rules are designed in isolation, they inevitably lead to misunderstandings, unnecessary costs, and excessive bureaucracy. CBAM is a clear example of this.” While CBAM may support long-term decarbonisation objectives, it does not directly resolve issues related to scrap retention, energy costs or industrial competitiveness. Thus, a “more practical, inclusive, and functional regulatory approach” is imperative.

Packaging sector, especially beverage can manufacturers, showcases circularity

The area where Europe continues to demonstrate success is beverage can recycling.

Chris Latham-Warde, Programme Manager at Every Can Counts, highlighted growing public support for recycling initiatives and deposit return schemes (DRS), noting that “59 per cent of Gen Z, 66 per cent of Millennials, 75 per cent of Gen X and 77 per cent of Boomers support deposit return schemes.”

The growing acceptance of DRS is increasingly reflected in recycling performance across Europe. Krassimira Kazashka, CEO of Metal Packaging Europe, pointed out that aluminium beverage cans in 2025 reached “a recycling rate of 76.3 per cent in 2023, supported by good recycling infrastructure.” Through the DRS, Germany and Finland achieved “recycling rates of 99 per cent.” Sweden’s container recycling rate reached 88.4 per cent in 2025, advancing towards the national target of 90 per cent. Hungary also recovered 116.5 million cans each month in Q2 2026.

She explained that the EU's Packaging and Packaging Waste Regulation (PPWR) is expected to further accelerate progress, requiring Member States to achieve a 90 per cent separate collection rate for beverage containers by 2029, encouraging wider adoption of proven collection systems.

MPE stresses the aluminium beverage can sector is targeting 100 per cent recycling by 2030, with the ultimate goal of establishing a fully functioning European can-to-can loop.

Explore the position of aluminium at the intersection of sustainability and strategy in Sustainability & Recycling: Aluminium's Dual Commitment

Policy debate: export restrictions or smarter incentives?

Europe’s aluminium recycling industry is no longer debating whether circularity matters, but how to secure the material needed to make circularity work at scale.

As demand for low-carbon aluminium accelerates, Europe's ability to retain, process and reuse its own scrap may ultimately determine whether it remains a leader in sustainable aluminium production or becomes increasingly dependent on external supply chains. The next phase of the recycling journey, industry experts suggest, will be defined not by collection alone, but by how effectively Europe transforms scrap into a strategic resource for its industrial future.

Why every aluminium recycler should understand hedging: Learn from Jorge Eduardo Dyszel in this exclusive webinar

Fri, 19 Jun 2026 12:45:00 +0530

Within the aluminium recycling industry, recyclers have a robust demand and running efficient operations does not always mean they will enjoy healthy profit margins. A sudden shift in metal prices, from buying scrap to selling finished products, can swiftly eat away profits, putting businesses at risk even when they are doing everything else right.

Moreover, the metal markets are always in flux and for aluminium recyclers, even the smallest price change can have a big impact on procurement decision-making, inventory valuation, customer agreements and overall profit margins. Although the recyclers would not be able to completely eliminate volatility, they can enhance their responsiveness by implementing effective risk management strategies.

To help recyclers build this capability, AL Circle is hosting the third edition of "Hedging for Recyclers: Become an Expert in 6 Hours," led by internationally recognised LME trainer and risk management consultant Jorge Eduardo Dyszel.

Other details:

Duration: 6 hours
Time: 7:30 PM - 8:30 PM IST 4:00 PM - 5:00 PM CEST
Starts: July 20, 2026

Why shouldn't you miss this webinar?

The webinar is well suited for aluminium recyclers, traders, procurement experts and commercial decision-makers. Wondering why so? This webinar dives deep into the practical side of hedging, showing how it can seamlessly fit into daily business activities. Attendees will walk away with a solid grasp of price risk management and discover how market intelligence can empower them to make bolder, more informed commercial choices.

Your final takeaways from the webinar:

Clarity on how commodity prices are formed and why volatility exists in base metal markets.
How price movements affect recycler margins, inventories, purchase timing and sales commitments.
Price fixation and the critical exposure points in the recycling business model.
Practical futures hedging strategies for aluminium, copper, lead and other base metals.
How options can help protect margins while preserving upside opportunities.
A more professional internal risk management culture across commercial, finance and management teams.

Outlining the webinar objectives & topics

Objective 1: Understand how commodity prices are formed and why volatility matters to recyclers.

How commodity prices are formed
Why does volatility exist in metal markets
How price movements affect recycler margins
Impact of volatility on inventories and commercial decisions

Objective 2: Identify exposure points in the recycler business model and understand price fixation risks.

Recycler business model analysis
Critical exposure points
Pricing mechanisms
Timing of price fixation
Operational reasons for risk mitigation

Objective 3: Learn how futures can be used to manage metal price risk in recycling businesses.

Futures hedging strategies for recyclers
Practical use cases in volatile markets
Real-world examples of hedging failures
Mismatch and non-performance situations

Objective 4: Apply hedging concepts through hands-on market scenarios.

Risk mitigation exercises
Aluminium hedging scenarios
Copper and lead hedging examples
Commercial simulations based on recycler exposure

Objective 5: Understand how options can help recyclers manage risk with greater flexibility.

Introduction to options markets
Use of calls and puts
Protecting margins with options
Preserving upside opportunities
Flexible hedging structures for recyclers

Objective 6: Learn how recycling companies can design a practical internal risk management framework.

Building a risk management policy
Internal controls
Commercial decision-making processes
Practical risk governance for recycling companies

Know your trainer

With more than 40 years under his belt in metals risk management and a strong connection to the London Metal Exchange (LME), Jorge Eduardo Dyszel stands out as a globally recognised consultant and trainer. He has shared his insights with clients in over 15 countries and collaborated with top-tier organisations like Aluar Aluminio Argentino and Glencore, ensuring that he brings a wealth of practical knowledge to every session. His extensive experience training professionals in Argentina, Mexico and Spain makes this webinar a fantastic chance to learn from one of the most respected figures in the industry.

Who should attend this webinar?

Whether you have hedging experience or not, this course is ideal for professionals exposed to metal price volatility, including:

Metal recyclers and scrap traders
Commercial managers
Purchasing and procurement managers
Financial managers
Risk management professionals
Base metal traders
Aluminium, copper and lead market professionals
Industry executives managing inventories, pricing and commercial exposure

Fee structure and registration

The course is set to take place online, starting on July 20, 2026, with six engaging one-hour sessions. You can sign up individually or in a group to join in. If you register HERE by the end of June, you can avail a 20 per cent discount on individual bookings and for a group of three or more people, you can also avail a 25 per cent discount.

For those professionals eager to enhance their skills, this course is your way to start with. Sign up and discover how top aluminium recyclers tackle risk before the next wave of market changes hits.

Secondary aluminium market supply-demand weakness continues

Sat, 20 Jun 2026 06:30:00 +0530

The aluminium scrap market mostly fluctuated at highs this week. As of June 18, SMM A00 spot aluminium closed at RMB 23,870 per tonne, up RMB 90 per tonne from last Thursday. Regarding price spreads, on June 18, the price difference between A00 aluminium and mixed aluminium extrusion scrap free of paint in Foshan was RMB 2,347 per tonne, and the price difference between A00 aluminium and shredded aluminium tense scrap was RMB 1,696 per tonne, narrowing by RMB 251 per tonne and RMB 364 per tonne, respectively, from last Thursday.

Enterprise tax costs increased by over 2 per cent compared to the same period last year. The continued narrowing of price spreads reflects strong bottom support for aluminium scrap. Supply side, the supervision of the “reverse invoicing” policy remained tight; cancelation of tax rebates in some provinces and intensified tax inspections drove up the cost of invoiced raw materials.

The price spread between Chinese and overseas markets remained inverted, low-priced, high-quality imports were scarce, further weakening the supplement to the domestic market. Demand side, the off-season effect deepened.

Downstream scrap utilisation enterprises’ operating rates stayed low, end-user orders were sluggish, and enterprises maintained purchasing-as-needed and low-inventory strategies in a cautious buying atmosphere. As the Dragon Boat Festival holiday approached, downstream scrap utilization enterprises showed low purchasing willingness, no evident pre-holiday stockpiling was observed, and some yards closed for 1–2 days due to insufficient shipment orders.

The aluminium scrap market is expected to continue its pattern of fluctuating at highs with a weak tone. Tight supply of compliant invoiced cargo persists, coupled with expanding production cuts and shutdowns, strengthening expectations of shrinking aluminium scrap supply and providing bottom support for prices.

Demand side, downstream secondary cast aluminium alloy orders remained sluggish, purchasing support from wrought aluminium alloys also weakened and end-use consumption was difficult to improve materially. The weak supply-demand pattern in the aluminium scrap market is hard to reverse in the short term.

Secondary aluminium alloy:

This week, the SMM ADC12 price was initially raised by RMB 100 per tonne before pulling back slightly, then held steady at RMB 24,100 per tonne for the rest of the week, with the overall weekly range narrow, presenting a pattern of moving sideways at highs.

On the cost side, tight compliant aluminium scrap supply and tightness of tax invoices provided core support, keeping enterprises’ production costs under persistent pressure, and there was a generally strong willingness to hold prices firm.

On the demand side, orders from the automotive sector were in the doldrums, pre‑holiday stockpiling sentiment was sluggish, new order releases were limited, and only the motorcycle sector and some niche segments showed moderate performance.

Downstream die-casting enterprises showed limited purchasing willingness as the Dragon Boat Festival holiday approached, mostly restocking on an as‑needed basis, with no pre‑holiday stockpiling activity emerging.

On the supply side, the operating rate of industry leaders fell 0.3 percentage points W-o-W to 53.1 per cent, with the decline attributable not only to strict crackdowns on invoice-related practices but also to weakening demand and holidays at some downstream plants.

Social inventory fell 5,600 tonnes W-o-W to 53,100 tonnes this week, declining for three consecutive weeks, as passive production cuts caused by a shortage of invoices continued to tighten circulating supply. On the import side, overseas ADC12 offers dropped to USD 3,300–3,380 per tonne. The domestic‑overseas price inversion eased somewhat, but the theoretical loss remained at about RMB 2,600 per tonne, and the import window stayed shut.

Looking ahead, ADC12 prices are expected to fluctuate at highs in the short term. On the downside, tight aluminium scrap supply, tax invoice constraints, and high costs underpin prices, leaving limited downside room. On the upside, weak end-use demand caps gains, providing little momentum for an upward breakout.

Going forward, two key variables should be monitored closely: whether end‑use demand can recover substantially in the H2 peak season, and the extent of ongoing supply constraints from invoice regulation. If peak‑season demand materializes and supply releases are constrained, the supply‑demand balance will tighten, giving ADC12 further upside room. Conversely, if demand falls short of expectations, prices will remain range‑bound, moving sideways.

Note: This article has been issued by SMM and has been published by AL Circle with its original information without any modifications or edits to the core subject/data.

China’s aluminium scrap imports from overseas jump 4% in Q1’26

Sun, 21 Jun 2026 02:30:00 +0530

As we look more closely into the aluminium industry of China, the leading exporter in the global aluminium supply chain, it appears to fall short in the aluminium scrap market. How do we know? China’s import data accumulated from the International Trade Administration offer evident pointers.

In Q1 2026, China sourced 526,380 tonnes of aluminium scrap from the world, which reflects a notable year-on-year surge of 3.92 per cent from the import volume of 506,546 tonnes in Q1 2025. The spike in imports prompts an in-depth tracking of the nation's aluminium scrap sources.

Annually, the import volume has shot up to 2.02 million tonnes in 2025 from 1.78 million tonnes in 2024, up Y-o-Y by 13.48 per cent.

Since 2025, China’s top three suppliers of aluminium scrap have been:

Thailand, contributing 21.05 per cent to China’s import cumulative
The European Union, shipping 19.34 per cent to China’s import cumulative
The United Kingdom, exporting 13.14 per cent to China’s import cumulative

Delve deeper into the recycled aluminium and secondary aluminium market with our World Recycled ALuminium Market Analysis Industry forecast to 2032

Thailand to China

The largest supplier to China, Thailand has occupied the top position since 2025.

Quarterly trade study shows:

Q1 2026 – 110,810 tonnes (USD 276.8 million), down 16.7 per cent Y-o-Y from Q1 2025

Q1 2025 – 133,018 tonnes (USD 289 million), up per cent Y-o-Y from 63,766 tonnes (USD 128.17 million) in Q1 2024

In 2025, Thailand supplied a cumulative 470,698 tonnes (USD 1 billion) of aluminium scrap to China, the figure rising Y-o-Y by a staggering 57.82 per cent from 298,243 tonnes (USD 622.85 million) shipped in 2024.

Gather insights on the aluminium recycling market from LME-Certified Risk Management Consultant’s exclusive session on Hedging for recyclers - Become an expert in 6 hours.

The EU to China

The EU occupied the second position in 2025, after remaining on top from 2023 to 2024.

Q1 2026 – 101,814 tonnes (USD 254.6 million), up 30.47 per cent Y-o-Y from Q1 2025

Q1 2025 – 78,037 tonnes (USD 170.87 million), up 4.38 per cent Y-o-Y from 74,764 tonnes (USD 149 million) in Q1 2024

In 2025, the cumulative volume of aluminium scrap shipped from the EU to China amounted to 348,607 tonnes (USD 772 million), recording a Y-o-Y surge of 16.83 per cent from the 298,397 tonnes (USD 625 million) traded in 2024.

Explore the position of aluminium at the intersection of sustainability and strategy in Sustainability & Recycling: Aluminium's Dual Commitment

The UK to China

Similar to the top two exporters, the UK has risen to third place in 2025.

Q1 2026 – 69,157 tonnes (USD 169.83 million), up 13.75 per cent Y-o-Y from Q1 2025

Q1 2025 – 60,796 tonnes (USD 133.95 million), up 27.52 per cent Y-o-Y from 47,674 tonnes (USD 95.57 million) in Q1 2024

In 2025, the UK shipped a total of 245,313 tonnes (USD 541.86 million) of aluminium scrap to China, the figure climbing from 193,638 tonnes (USD 409.2 million) exported in 2024 by 26.69 per cent Y-o-Y.

As both the volume and value of aluminium scrap trade go up, making the three overseas markets prime suppliers to China, thereby deepening the nation’s increasing dependence on external sources to sustain its aluminium scrap flow becomes starkly evident.

Trading aluminium across borders? Find out the exact cost you need to bear for the embedded carbon in the product by using this CBAM calculator.