AlCircle: Latest secondary aluminium news update

Europe’s aluminium roadmap: Circularity, resource security, low-carbon imperative

Fri, 12 Jun 2026 17:47:00 +0530

As Europe accelerates its shift towards a low-carbon economy, aluminium is emerging as a cornerstone material across automotive, renewable energy, packaging and industrial applications. The region is simultaneously pursuing greater recycling, strengthening resource security, advancing circular economy models and tightening carbon regulations. Yet, rising scrap exports, evolving trade mechanisms and growing demand for sustainable materials continue to test the resilience of Europe’s aluminium value chain.

CBAM, carbon leakage and Europe’s regulatory tightrope

As the European Union prepares to expand its Carbon Border Adjustment Mechanism (CBAM) to around 180 downstream aluminium-intensive products from 2028, exporters face a major shift from simply supplying metal to proving the carbon footprint embedded across their supply chains. The new regime is expected to increase compliance costs, particularly for carbon-intensive products, while placing greater emphasis on emissions tracking, verified data, and low-carbon production. For aluminium exporters targeting Europe, early investment in traceability, reporting systems and decarbonisation strategies will be critical to maintaining competitiveness in an increasingly carbon-conscious market.

The European aluminium industry has renewed its call for stronger safeguards to protect aluminium scrap and shield Europe from the incomplete CBAM framework. As the European Union finance ministers prepare to finalise their position on revisions to the CBAM, European Aluminium strongly warns that the existing framework still falls short of protecting the sector from carbon leakage.

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

Recycling expansion meets growing scrap security concerns

Europe’s aluminium recycling sector continues to expand despite rising scrap exports, with demand for recycled aluminium expected to approach 8 million tonnes by 2025. Recycling rates remain above 80 per cent across key sectors, supported by advanced sorting technologies, closed-loop systems and growing investments from major producers. However, aluminium scrap exports have surged 66 per cent since 2014, raising concerns over feedstock availability, industrial competitiveness and Europe’s ability to secure enough low-carbon material for its long-term decarbonisation goals.

Europe is intensifying efforts to retain aluminium scrap within the region as part of its broader push toward circularity and low-carbon manufacturing. Recent policy measures are expected to strengthen recycling rates and improve feedstock availability for domestic remelters and downstream producers. However, challenges remain, particularly around scrap exports. Industry stakeholders argue that without addressing outbound flows, Europe would no longer be equipped to provide to sectors like automotive and packaging.

Germany's secondary aluminium sector is emerging as a cornerstone of the country's circular economy. High collection rates for beverage cans and packaging, coupled with extensive remelting and recycling infrastructure, have helped Germany reduce dependence on primary metal while strengthening resource efficiency. The automotive sector remains the largest consumer of secondary aluminium, accounting for nearly half of demand. Despite these strengths, rising scrap shortages and competition for recyclable material are becoming key challenges for maintaining future growth and securing feedstock for domestic recyclers.

The UK aluminium industry is urging policymakers to treat aluminium scrap as a strategic resource rather than waste, arguing that recycled metal is critical for industrial resilience, decarbonisation and supply-chain security. Shifting global trade flows and growing international demand for recycled aluminium are creating supply risks for domestic remelters and manufacturers. As governments increasingly recognise aluminium as a critical material, the debate is moving beyond recycling rates to focus on resource security, circular economy goals and the long-term value of keeping high-quality scrap available for local processing.

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

Low-carbon aluminium shapes geopolitics, mine and mobility

Electricity is becoming the defining factor in where and how aluminium is produced. Hydropower-rich regions such as Canada, Norway and parts of China are gaining a competitive edge, while coal-dependent producers face increasing pressure to decarbonise. However, challenges related to renewable intermittency, grid stability and storage remain significant, making a balanced energy mix crucial for the industry's future. At the same time, recycled aluminium is emerging as a key solution, requiring only a fraction of the energy needed for primary production, thereby helping producers cut both costs and emissions.

Europe’s automotive sector is on track to consume 4.2 million tonnes of aluminium annually by 2030, fuelled by electrification and lightweighting trends. Recycled aluminium is expected to gain momentum thanks to its lower emissions and energy use, while primary aluminium will remain indispensable for quality-sensitive applications. With scrap availability and recycling capacity still posing challenges, the industry’s future is likely to depend on a complementary blend of primary and recycled aluminium.

Rio Tinto is introducing automated drill rigs with data-driven operational systems to improve the operating performance of its existing mining operations with increased levels of operational precision and less manual input. This announcement highlights the industry’s continued push toward automation and smarter mining tech for better efficiency and cost savings. It also has a USD 1.5 billion project to expand a low-carbon aluminium smelter in Quebec, Canada. It aims to meet growing global demand for eco-friendlier materials.

Waaree Renewable Technologies has received a contract to develop a 300 MW solar project, planned to be completed by FY27. The company has received the new order from its wholly owned subsidiary, Sunsational Power Private Limited (SPPL), for the development of the large-scale solar project. Under the agreement, Waaree will handle the construction of a 300 MW/450 MWp ground-mounted solar power project. The contract also includes operation and maintenance services for two years after the project is commissioned.

Toyota Motor Manufacturing UK has advanced its circular economy strategy by establishing a closed-loop aluminium recycling system at its Burnaston facility in Derbyshire, England. It has created what the company describes as a European-first process for recovering aluminium from end-of-life vehicles and reusing it in the production of new hybrid auto components.

German aluminium producer Trimet has planned to invest at its recycling operations, including the construction of a new aluminium recycling facility in Hamm and capacity expansions at existing sites in Gelsenkirchen and Essen. At its recycling plant in Gelsenkirchen, the company has expanded production capacity through the installation of new melting units. The additional equipment is expected to increase recycled aluminium output by up to 80,000 tonnes per year.

Paper-based packaging company Elopak has begun using low-carbon aluminium produced with renewable electricity in carton packaging manufactured at its facilities in the Netherlands, Denmark and Ukraine, to reduce the environmental impact of its products. According to the company, it lowers the carbon footprint of its standard packaging by nearly 8 per cent. Based on cradle-to-gate calculations, the carbon footprint of a standard aseptic Pure-Pak carton has been reduced from 53 grams of CO₂ to 49 grams per carton.

Rising tensions in West Asia are beginning to ripple through the renewable energy sector. Prices of locally produced solar cells have climbed by as much as 35 per cent since the start of the year, driven by higher aluminium, copper and petrochemical costs, alongside supply-chain disruptions. This has lifted overall solar project costs by around 20 per cent, burdening developer margins, financing plans and project economics. Industrialists warn that prolonged inflation could slow renewable energy deployment and complicate efforts to meet clean-energy goals.

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.

SACA, a new coalition, debuts to support growth of recycled aluminium production in the US

Fri, 12 Jun 2026 17:30:00 +0530

A new trade group representing companies involved in the US secondary aluminium industry has been launched, bringing together businesses from across the country's aluminium recycling and processing value chain. The organisation, called the Secondary Aluminum Coalition for America (SACA), says it represents companies involved in scrap collection and trading, remelting, extrusion and fabrication.

This week, members of the coalition travelled to Washington to meet administration officials and lawmakers. According to the group, the purpose of the visit is to demonstrate that expanding secondary aluminium production offers the fastest route to increasing domestic aluminium capacity.

SACA argues that producing aluminium from scrap can be scaled up more quickly and at a lower cost than building new primary aluminium capacity, which depends on smelting metal from raw materials. The coalition believes strengthening the secondary sector could boost domestic supply, support manufacturing jobs and make US supply chains more resilient.

The coalition was founded by companies from across the industry, including Metal Exchange, Pennex, Schupan, Shapiro Metals, Smelter Service Corp., Tower Extrusions, Tri-Arrows Aluminum and Western Extrusions.

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Matt Rohm, CEO of Metal Exchange and one of SACA's founders, said recycled aluminium should play a central role in broader efforts to rebuild US aluminium production capacity, alongside primary metal production.

According to SACA, the secondary aluminium sector accounts for more than 97 per cent of employment across the US aluminium industry. The organisation also says it supports policies aimed at strengthening domestic supply chains by increasing the use of American-generated aluminium scrap and expanding the country's recycling network.

The coalition's launch comes as policymakers continue to debate the future of US aluminium supply chains and scrap exports. However, SACA has not publicly commented on a recently proposed bill that would examine the national security implications of exporting aluminium scrap to certain countries.

According to the coalition, representatives taking part in this week's Washington fly-in plan to meet officials from the White House, the Department of Energy, the International Trade Administration, the Office of the US Trade Representative and members of Congress from several states with significant aluminium industry operations.

Participate in our upcoming e-Magazine - Mine to Market: ALuminium Producers & Manufacturers 2026

From 99% can recycling to 48% automotive demand: Mapping Germany's secondary aluminium production to consumption economy

Fri, 12 Jun 2026 10:10:00 +0530

Germany's secondary aluminium industry occupies a unique position within the global metals landscape. In a country consuming approximately 2.1 million tonnes of aluminium annually, recycled metal has evolved from a supplementary feedstock into a fundamental pillar of industrial supply. The significance of secondary aluminium extends beyond resource efficiency. Producing aluminium from recycled scrap requires approximately 95 per cent less energy than primary smelting, while reducing associated carbon emissions by nearly 94 per cent.

Yet despite these advantages, Germany's recycling ecosystem is going through a period of production volatility, tightening scrap availability and shifting downstream demand patterns. During the opening quarter of 2026, recycled aluminium output stood at 684,564 tonnes, while industry surveys indicated that 85 per cent of domestic recyclers were experiencing feedstock shortages. At the same time, European aluminium scrap exports reached 1.2 million tonnes in 2024, intensifying competition for raw material required by Germany's automotive, construction, packaging and engineering sectors.

Secondary aluminium production enters a period of adjustment?

Germany has traditionally maintained one of Europe's largest secondary aluminium sectors, with recycled aluminium production racing on a similar pace with domestic primary aluminium output.

Signs of industrial weakness first became visible during 2023. In the second quarter, total unwrought aluminium production declined by 14 per cent year-on-year, falling to approximately 748,000 tonnes. For the first 6 months of the year, cumulative unwrought aluminium output amounted to around 1.5 million tonnes.

The most severe contraction occurred in primary aluminium production. During the first half of 2023, primary smelters produced only 98,000 tonnes, representing a 50 per cent decline from the previous year. As primary output weakened, secondary production assumed even greater importance within Germany's aluminium value chain.

The first signs of recovery emerged in 2024. Recycled aluminium production increased to approximately 725,000 tonnes during the second quarter, recording a 4 per cent year-on-year increase. Despite this quarterly improvement, cumulative first-half secondary output reached approximately 1.41 million tonnes, with a ripple effect of a 2 per cent decline compared to the previous year.

By the fourth quarter, recyclers registered another increase, producing 648,000 tonnes, equivalent to a 3 per cent annual gain. Nevertheless, Germany's total raw aluminium production for the full year reached approximately 2.7 million tonnes, representing an overall 2 per cent decline from the previous year.

Production impetus briefly improved in early 2025. Recycled aluminium output reached approximately 703,000 tonnes during the first quarter, marking a 3 per cent year-on-year increase. However, this improvement proved temporary as production slipped back during the same period of 2026.

Refiners and remelters follow different trajectories

In general, refiners primarily process mixed post-consumer and post-industrial scrap into secondary casting alloys widely used by automotive foundries. Remelters, by contrast, utilise cleaner and more segregated scrap streams to produce extrusion billets, rolling slabs and other wrought alloy products.

During the first quarter of 2026, refiners increased production by 2 per cent, reaching 128,639 tonnes. Remelters moved in the opposite direction, recording a 4 per cent decline to 555,925 tonnes.

In Germany’s stance, remelters accounted for more than four times the output of refiners and therefore exerted a much greater influence on overall secondary production levels. The contraction among remelters ultimately outweighed growth among refiners, contributing to the overall decline in recycled aluminium output during the period.

The figures also points at differing market exposures. Refiners remain closely linked to demand for secondary casting alloys, particularly from automotive applications, while remelters are more exposed to demand from extrusion, rolling and semi-fabrication industries.

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Semi-fabrication output mirrors upstream weakness

Germany's semi-finished aluminium sector has a close connection with developments occurring upstream in recycled metal production.

During the first half of 2023, semi-finished output fell by 10 per cent year-on-year, reaching approximately 1.2 million tonnes.

The decline continued throughout the following year. First-half 2024 production reached 1.12 million tonnes, representing a further 4 per cent reduction. Within this total, rolled products accounted for 912,000 tonnes, while extrusion output amounted to 247,000 tonnes.

Annual figures showed a similar pattern. Germany produced approximately 2.3 million tonnes of semi-finished aluminium products during 2024. Rolled products represented roughly 1.8 million tonnes, while extrusions accounted for 467,000 tonnes.

The downward trend persisted into 2026. During the first quarter, total semi-finished production amounted to 567,688 tonnes. Rolled products contributed 452,894 tonnes, whereas extrusion production stood at 115,794 tonnes.

Business sentiment surveys echoed these production trends. Approximately 71 per cent of surveyed companies reported low capacity utilisation, while 57 per cent indicated they did not expect significant improvements before the end of the year.

Germany's recycling infrastructure processes hundreds of thousands of tonnes annually

The country's secondary aluminium industry is supported by an extensive network of recyclers, remelters, rolling mills and scrap processors.

Novelis operates what is described as the world's largest single-site aluminium recycling facility in Nachterstedt, with an annual recycling capacity of approximately 400,000 tonnes. The company also participates in Alunorf, an integrated rolling operation capable of processing up to 1.6 million tonnes of rolled products annually.

Speira maintains a total European recycling capacity of approximately 650,000 tonnes per year, much of which is anchored in Germany. The company continues investing in secondary smelting upgrades and closed-loop recycling systems.

Trimet Aluminium SE remains one of Germany's most important independent recycling operators. The company produces approximately 200,000 tonnes of remelting ingots annually. At Gelsenkirchen, investments in rotary furnace technology increased recycling output by 20 per cent, lifting annual production capability to around 80,000 tonnes.

Additional investments include expansion of alloy-specific storage infrastructure at Essen by 16,000 tonnes and the construction of a new sorting and logistics hub in Hamm.

Norsk Hydro's Dormagen facility contributes further capacity through annual processing of approximately 36,000 tonnes of post-consumer scrap, supplying material into the company's low-carbon aluminium product portfolio.

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Automotive remains the dominant consumer of secondary aluminium

No industry exerts greater influence over German aluminium consumption than automotive and transportation. Why? Because the sector accounts for approximately 48 per cent of total aluminium demand, making it the single largest destination for both primary and secondary aluminium products.

Demand spans a wide range of applications, including engine blocks, powertrain systems, structural castings, chassis components and lightweight body structures.

Market projections highlight the growing importance of aluminium alloys within the transportation sector. Germany's aluminium alloys market is forecast to increase from USD 5,611.3 million in 2023 to approximately USD 8,356 million by 2030, representing a compound annual growth rate of 6.6 per cent.

Secondary casting alloys remain extensively used because they can accommodate broader scrap compositions while meeting the performance requirements of numerous automotive applications.

The industry's transition towards electrified mobility is also influencing alloy requirements. Structural battery housings, crash-management systems and cooling assemblies increasingly require more tightly controlled alloy compositions and higher-quality recycled feedstocks.

These requirements are reinforced by evolving European regulations. Under revised End-of-Life Vehicle rules, recyclability targets remain at 85 per cent, while recoverability targets continue at 95 per cent by vehicle weight, increasing attention on scrap separation and material traceability.

Construction continues to provide a substantial outlet for recycled metal

Construction represents Germany's second-largest aluminium-consuming segment after transportation, accounting for approximately 15 per cent of national demand.

The sector utilises aluminium in curtain walls, roofing systems, building facades, architectural glazing, doors, windows and modular infrastructure projects.

Unlike packaging applications, where recycling cycles can be measured in weeks, construction products often remain in service for decades. Aluminium incorporated into buildings may remain in use for periods ranging from 35 years to well over a century before re-entering recycling streams.

Despite long service lives, end-of-life recovery rates remain exceptionally high. Approximately 95 per cent of aluminium recovered from demolished building components is recycled.

However, weaker construction activity in the recent past has affected demand for secondary extrusion products and fabrication materials.

Packaging delivers Germany's highest recycling performance

Among all aluminium-consuming sectors, packaging exhibits the most efficient circularity.

Germany records overall aluminium packaging recycling rates of between 90 and 95 per cent, supported by highly developed collection and sorting systems.

Performance is even stronger for beverage cans. Aluminium beverage cans achieve recycling rates of approximately 99 per cent, placing Germany among the world's leading can-recycling markets.

The country's Deposit Return Scheme plays a critical role in sustaining these recovery levels. Return rates for aluminium-based consumer packaging exceed 87 per cent, enabling large volumes of post-consumer material to be returned rapidly to the manufacturing cycle.

The packaging sector is also at the forefront of closed-loop recycling initiatives. Beverage cans frequently return to production systems within weeks of consumption, enabling can-stock manufacturers to preserve alloy quality while reducing demand for virgin metal inputs.

Industry participants have established ambitions to achieve 100 per cent beverage-can recycling by 2030, further strengthening the role of recycled aluminium within packaging supply chains.

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Mechanical engineering expands the reach of recycled aluminium

Beyond automotive, construction and packaging, secondary aluminium also serves Germany's extensive machinery and engineering sectors.

Applications include compressors, pumps, industrial handling systems, power transmission equipment and machine tools.

Long-term projections suggest substantial growth potential. Research indicates that overall aluminium consumption in Germany could expand by 95 per cent by 2050, driven largely by material substitution trends favouring lightweight metals.

Supporting this transition is a growing market for Aluminium-Titanium-Boron master alloys used to improve the mechanical properties of recycled metal.

The German AlTiB (Aluminum Titanium Boron) market was valued at USD 34.6 million in 2024 and is projected to reach USD 52.4 million by 2032, expanding at a CAGR of 4.8 per cent.

These additives enable secondary aluminium producers to refine grain structures, improve casting quality and maintain mechanical performance even when using recycled feedstocks containing higher levels of residual elements.

Scrap shortages increasingly shape the market

Despite achieving some of Europe's highest recycling rates, Germany faces increasing challenges securing sufficient scrap feedstock.

The shortage is the result of a combination of lower domestic scrap generation, changing industrial activity levels and growing competition from export markets.

The most visible trend has been the rapid growth of scrap exports. European aluminium scrap exports have doubled since 2015 and reached approximately 1.2 million tonnes during 2024.

At the same time, Europe faces a scrap deficit approaching 2 million tonnes, highlighting the growing mismatch between domestic demand and available supply.

Demand from overseas markets has intensified this imbalance. During the opening quarter of 2025, European Union aluminium scrap exports to the United States increased by 273 per cent year-on-year.

The resulting competition has pushed aluminium scrap prices to approximately 94 per cent of the London Metal Exchange primary aluminium price, a historically elevated relationship between recycled and primary metal values.

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A recycling industry serving every major aluminium-consuming sector

Germany's secondary aluminium industry today encompasses a production system that generates recycled aluminium to support rolling operations and includes recycling facilities with capacities ranging from 36,000 tonnes to 650,000 tonnes per year, consequently supplying industries that collectively account for the majority of domestic aluminium consumption.

Combined with energy savings of up to 95 per cent, emissions reductions exceeding 93 per cent, and long-term consumption growth expectations extending towards mid-century, secondary aluminium remains one of the most strategically important segments of Germany's aluminium value chain.

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

Schupan Aluminum & Plastic strengthens leadership team with Matt Webster and Kevin Roschek promotions

Fri, 12 Jun 2026 14:00:00 +0530

Schupan Aluminum & Plastic Sales has promoted Matt Webster to vice president and Kevin Roschek to senior director of divisional operations, reinforcing its leadership team as the company continues to expand its aluminium and plastic distribution business.

The appointments come as the Kalamazoo, Michigan-based company adds management capacity to support a larger and more complex operation while positioning itself for future growth.

"As Aluminum & Plastic Sales has grown in size and complexity, we're adding senior leadership capacity to match the business's ambition for continued market growth while leveraging the momentum our team has built," said John Barry, president of Schupan Aluminum & Plastic Sales. "Both of these appointments reflect our commitment to developing the leaders within our organisation - and investing in the people who will carry this business forward."

Webster joined Schupan in 2022 as director of supply chain and continuous improvement and has now been elevated to vice president. In his new role, he will help guide the division's strategic direction while supporting improvements in operational performance, supply chain management and customer service.

Explore: The most comprehensive and forward-looking industry-focused report – “World Recycled ALuminium Market Analysis Industry forecast to 2032”

He brings more than 27 years of leadership experience across manufacturing and industrial businesses. Before joining Schupan, Webster served as divisional general manager for Parker-Hannifin's Hydraulic Systems Division, overseeing operations within one of the global industrial technology company's key business segments. His background spans business management, operational leadership and continuous process improvement, and he holds both bachelor's and master's degrees in business management from Western Michigan University.

Roschek, meanwhile, has been promoted to senior director of divisional operations after nearly two decades with Schupan. During his tenure, he has held a variety of positions across sales, operations and plant management, gaining broad experience throughout the company's distribution and processing network.

His career with Schupan has included leadership roles in Dayton, Ohio, and Kalamazoo, Michigan, where he managed operations and helped support growth across multiple facilities. The company said his extensive operational experience will play an important role as the division continues to expand its capabilities and improve efficiency.

The promotions reflect Schupan's broader strategy of investing in experienced internal talent to strengthen operational excellence, enhance supply chain performance and support evolving customer and market requirements. The company said promoting leaders with deep institutional knowledge helps maintain continuity while positioning the business for long-term growth

Founded in 1968, Schupan is a family-owned provider of sustainable material solutions serving customers across the manufacturing, recycling and industrial sectors. Through its Aluminum & Plastic Sales, Materials Trading, Beverage Recycling and Industrial Recycling divisions, the company supplies and processes both prime and recycled materials while also providing recycling and sustainability services to customers across North America and international markets.

China's aluminium scrap prices stay rangebound

Fri, 12 Jun 2026 08:10:00 +0530

On June 10, Mysteel assessed the average price for domestically-generated #6063 aluminium scrap in South China's Guandong province at RMB 19,650 per tonne (USD 2,901 per tonne), slightly lower by 0.5 per cent on month and unchanged from the end of May.

The increasing tax burden incurred by the aluminium scrap suppliers due to the government's Intensified "reverse invoicing" mandates caused many recycling companies to reduce or even stop scrap collection and processing leading to the further tightening of scrap availability in the market, Mysteel Global noted.

On the other hand, scrap consumption among Chinese secondary aluminium manufacturers shank as the traditional peak season for aluminium products in spring has passed. Mysteel's other survey showed.

For example, the total output of secondary aluminium alloys among the 158 Chinese smelters that Mysteel monitors had ended a two-month rise in May and dropped to 469,000 tonnes, lower by 2.8 per cent compared with April.

Explore: The most comprehensive and forward-looking industry-focused report – “World Recycled ALuminium Market Analysis Industry forecast to 2032”

Meanwhile, production of secondary aluminium billets by the 82 domestic smelters Mysteel tracks slid 4.3 per cent on week to 26,366 tonnes during June 4-10, while the total billet inventories held by these smelters had increased for two straight weeks to 7,980 tonnes by June 10.

The recent weakening of primary aluminium prices has also placed downward pressure on prices of aluminium scrap materials. As of June 10, China's national spot price for primary aluminium was assessed by Mysteel at RMB 23,828 per tonne including the 13 per cent VAT, lower by 1.5 per cent from the end of May.

With supply and demand both declining, China's aluminium scrap prices are expected to continue to remain rangebound overall in the weeks ahead, Mysteel survey suggests.

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

Europe must treat domestic scrap as a strategic asset to meet its decarbonisation target without being dependent on imports

Fri, 12 Jun 2026 09:30:00 +0530

As part of AL Circle’s latest initiative, “European Aluminium Recycling Market,” an exclusive interview between AL Circle and Tom Jansen, VP and Head of Segments for TOMRA Recycling, explored why Europe’s aluminium recycling debate is shifting from how much scrap is available to how well that scrap can be recovered, retained and reused within the region.

In this conversation Jansen stated that Europe’s real challenge lies in scrap quality, industrial retention and competitiveness. He warned that by allowing high-value aluminium scrap to leave the region, Europe is weakening its own circular economy and pushing local smelters into a costly bidding war with international buyers.

He also stressed that improving scrap quality must take priority over simply adding recycling capacity. Poor feedstock, he noted, reduces margins, limits investment and increases the risk of downcycling.

Read the full interview for Tom Jansen’s views on Europe’s aluminium scrap challenge, recycling competitiveness and the road ahead for a stronger circular economy.

AL Circle: From TOMRA’s perspective, are European recyclers investing in advanced sorting mainly due to regulation, or are scrap quality premiums, customer demands and profitability becoming stronger drivers?

Tom Jansen: It is a combination of both, but currently market forces are more influential, and our customers are mainly responding to the demands of downstream manufacturers. These manufacturers are facing rigorous net zero targets and recognise that high-quality secondary aluminium is the most effective way to lower their carbon footprint. As a result, the market premium for clean, alloy-specific scrap has increased significantly. Recyclers now view advanced sorting as a key business investment rather than just a compliance measure. By achieving higher purity levels, they can serve market segments that were previously out of reach, making the financial return on technology investment very compelling.

AL Circle: How is TOMRA adapting its technology roadmap to meet evolving requirements from aluminium producers that want higher recycled content without compromising alloy performance?

Tom Jansen: Historically, X-ray transmission was the industry standard for separating heavy metals, and it remains a key technology for bulk processing. However, today the requirement is for sophisticated, alloy-specific separation. We have been actively evolving our roadmap to address this, starting with our latest generation of x-ray transmission technology, X-TRACT™, which was launched in 2022 to handle initial bulk removal. In 2023, we added our AUTOSORT™ PULSE with dynamic laser-induced breakdown spectroscopy (LIBS) to solve the challenge of high-speed elemental alloy identification, followed in 2024 by the launch of GAINnext™, our deep learning-based AI solution.

To achieve the precise purity levels required today, we deploy a sequence of distinct, individual machines arranged chronologically in a continuous processing line:

First stage (X-TRACT™): This performs the primary bulk separation, removing heavy metals (such as copper, brass and zinc) as well as high-density wrought aluminium and high-alloy cast
Second stage (GAINnext™): GAINnext™ processes thousands of images per millisecond to analyse shape, size and dimension, allowing it to classify and remove remaining low-alloy cast and other low-density contaminants like UBCs that traditional sensors might miss.
Final stage (AUTOSORT™ PULSE): Lastly, the material passes through the AUTOSORT™ PULSE, which uses dynamic laser-induced breakdown spectroscopy (LIBS) to perform high-speed elemental analysis and identify specific alloys

By combining these technologies in a single, sequential line, we can deliver the high-purity output required to meet primary aluminium standards, ultimately increasing the market value of the recycled material.

AL Circle: Europe is increasingly dependent on secondary aluminium, yet a large volume of aluminium scrap continues to leave the region. How serious is Europe’s scrap deficit today, and which parts of the aluminium value chain are feeling the pressure most?

Tom Jansen: While significant amounts of scrap leave the region, the main issue is less about the volume and more about the quality of the material remaining in Europe. Secondary smelters are under the most pressure because they must compete for feedstock with regions outside of Europe where high prices are offered even for mixed, unsorted scrap.

This creates a competitive disadvantage for local industry. When high-value material is exported, European smelters are forced into a bidding war against international buyers to secure the limited supply of high-grade scrap that remains. To keep their furnaces running efficiently, they often have to choose between paying extremely high prices for local material or reverting to using virgin, primary metal. Because using virgin metal is much more energy intensive, this reliance drives up operating costs and weakens the competitive position of European recyclers. Ultimately, Europe is exporting its industrial advantage by letting these vital resources leave the region instead of keeping them within its own circular economy.

AL Circle: Aluminium scrap is now being viewed less as waste and more as a strategic secondary raw material. Do you think Europe has moved fast enough to treat scrap as an industrial-security issue?

Tom Jansen: Europe has recognised the importance of aluminium scrap as a critical raw material rather than waste, but it hasn’t yet implemented a strategy that effectively retains that scrap within the region. While the conversation has shifted, policy still lags behind the reality of industry needs.

Europe lacks the vast, low-cost primary production capacity found in other regions. To meet its decarbonisation targets without becoming increasingly dependent on imports, Europe must treat domestic scrap as a strategic asset. There is a need to move beyond viewing scrap exports as a standard commodity trade and start recognising them for what they actually are: the loss of a vital, energy-independent resource. Retaining this material is vital for Europe’s industrial security and its ability to build a robust, circular economy.

AL Circle: Europe exports a significant volume of aluminium scrap while its recyclers and remelters face rising input costs. Is this mainly a trade imbalance, a policy failure, or a capacity-utilisation problem?

Tom Jansen: These are not isolated problems, but interconnected symptoms of a single issue. The large volume of aluminium scrap exported could have been minimised by a proper framework that incentivises keeping scrap within the region. Because there is no framework to make domestic circularity the most attractive economic option, the market prioritises the highest price, which is often found overseas.

This scarcity drives up domestic prices, which reduces margins for recyclers. When margins are low, it becomes difficult to invest in the technology required to process more complex local streams.

AL Circle: The EU is considering targeted measures on aluminium scrap exports, but the recycling industry is divided. What is the real problem Europe must solve first: scrap leakage, domestic recycling capacity, or scrap-quality management?

Tom Jansen: Europe must optimise how it manages the aluminium scrap already available in its domestic market. While it is important to continue investing in domestic recycling capacity, the greatest gains will come from improving collection and recovery rates, as well as incentivising the development of sorting technology to produce higher-quality material.

Quality should be the priority. Expanding capacity is ineffective if the feedstock is poor, as this inevitably shrinks margins. The most significant improvements come from enhancing collection and deploying advanced technology to prevent the downcycling of high-value material. AI-based object singulation, for instance, allows for faster and more accurate sorting without sacrificing throughput. When the quality of the local feed is optimised, the issue of scrap leakage will naturally diminish because the material remains where it is valued most.

AL Circle: European Aluminium has supported export fees to keep more aluminium scrap within the EU. Would such measures strengthen Europe’s recycling ecosystem, or could they create unintended pressure on recyclers?

Tom Jansen: Relying on export fees alone will put recyclers under significant pressure, potentially damaging their competitiveness and discouraging investment in the collection and sorting solutions required to increase scrap quality.

The focus needs to be on making local scrap so high-quality and so cost-effective to process that exporters cannot compete. Instead of taxing trade, we should be rewarding investment in advanced sorting technology. By improving the quality of the feedstock, the industry can ensure that domestic demand is met through improved recovery. This naturally strengthens the entire recycling ecosystem.

AL Circle: Around 15 per cent of the European Union’s aluminium recycling furnace capacity is reportedly offline because of insufficient scrap supply. In your opinion, what could be the best possible ways to overcome this crisis?

Tom Jansen: The focus should be on creating an environment that encourages investment to boost capture rates and increase the purity of the recovered stream while producing higher-quality material. Governments can provide support by incentivising recycled content or implementing targeted measures to keep these valuable resources in the region.

The industry needs to bridge the gap between waste management and industrial end-users. Innovation in sorting technology is a vital part of that solution. Modular systems configured for specific challenges, such as removing complex contaminants from aluminium streams, are essential to extracting value that was previously considered lost. Furthermore, there is a need for greater digital transparency. By using data on material flow and machine health, feedstock can be managed much more efficiently.

Aluminium scrap leakage is also often driven by information asymmetry and inefficient market matching

Fri, 12 Jun 2026 06:15:00 +0530

In an exclusive interview with AL Circle as part of the latest initiative, “European Aluminium Recycling Market”, Ivan Mayorov of CANCOM Austria AG outlined the company’s role in building the digital infrastructure for RecAL, a Horizon Europe project designed to improve Europe’s aluminium supply chain and metals marketplace, enabling them to address long-standing challenges such as data sovereignty, traceability and transparency. Ivan believes information asymmetry and inefficient market matching often leads to scrap leakage. So, in his view, a transparent yet sovereign data exchange is important to create a more efficient internal European market for scrap.

Ivan Mayorov at CANCOM Austria AG is a Manager of Digital Sovereignty Team, co-created & now guides a dedicated, business value-focused team of senior system architects, market analysts & engineers responsible for driving strategic delivery and development of decentralised system architecture enabling secure and AI-ready cross domain data collaboration, supporting European digital sovereignty, reducing vendor lock-in and fostering interoperable, trusted data ecosystems. He is also a board member of the RecAL Horizon Europe Initiative and is in GAIA-X Austria Management Board.

AL Circle: How does CANCOM’s technology partnership with RecAL help address Europe’s core aluminium recycling challenges, particularly scrap traceability, quality transparency and cross-border material flow visibility?

Ivan Mayorov: CANCOM provides the sovereign digital infrastructure that enables RecAL to function as a trusted, cross-company and institution data ecosystem rather than a centralised platform. This is critical for addressing long-standing challenges such as data sovereignty, traceability and transparency.

Through the RecAL Dataspace, material flows can be tracked across organisational and national boundaries without requiring participants to relinquish control over their data. Scrap origin, processing steps, and quality parameters remain with the data owner but can be securely shared under clearly defined conditions. This creates end-to-end traceability while preserving data sovereignty.

At the same time, common data model, standardised data exchange and interoperable services enable a shared understanding of the European aluminium value chain. This improves transparency and allows recyclers, Tier1, OEMs, material research institutions and manufacturers to make better-informed decisions, especially in cross-border scenarios where trust and data consistency are often limiting factors.

AL Circle: Europe has recycling capacity, but purity, sorting accuracy and alloy separation remain critical issues. How can digital technologies provided by CANCOM improve efficiency and quality of recycled aluminium output?

Ivan Mayorov: The key is connecting previously isolated data points and making them actionable across the entire value chain.

CANCOM’s Dataspace with Zero Trust Federation approach enables the integration of material compound data, manufacturing, scrap quality, sorting information and alloy-specific knowledge into a unified, yet decentralised, system.

For example, data from advanced sorting systems can be combined with alloy design specifications and historical process feedback. This allows recyclers to better understand how input material characteristics affect final output quality.

In practice, this leads to:

Robust traceability of EU scrap streams & more precise classification of scrap streams.
Real-time supply-demand matching.
Improved matching between scrap input and target alloy specifications.
Continuous feedback loops that refine sorting and processing strategies.

The result is higher-purity recyclates, reduced downcycling and a measurable increase in the usability of recycled aluminium for high-performance applications (for example, aluminium recyclate cable manufacturing in the automotive sector).

AL Circle: How is data collected, validated and analysed within the European aluminium recycling value chain? Also, what type of data is most valuable in this ecosystem, such as alloy composition, scrap origin, contamination level, carbon footprint or availability?

Ivan Mayorov: Data in the RecAL ecosystem can be collected directly at the source, such as sorting facilities, recycling plants and manufacturing sites. The data remains under full control of the respective stakeholder, where validation happens through a combination of technical and organisational mechanisms:

Standardised data models ensure consistency.

100% decentralisation with Quantum Encrypted Service Mesh for peer-to-peer data or services access.
Self-service Trust & Access Policy Management with data integrity, monitoring & traceability enabling 100% data sovereignty.
Open-Source and Cloud Agnostic (Public/Private/Hybrid/Multi Cloud) with No Vendor Lock-in resulting 100% infrastructure Flexibility.
With focus on European federated governance frameworks, like GAIA-X.
Analysis is performed either locally or in a distributed manner, depending on the use case, enabling participants to extract insights without exposing all of the sensitive raw data.
The most valuable data types include alloy compositions and metallurgical properties, scrap origin and processing, contamination levels, impurity profiles, material availability and carbon footprint, together with Life Cycle Analysis data for sustainability metrics.
The real value, however, emerges when these data points (trust domains) are combined, enabling predictive and data-driven decision-making across the value chain.

AL Circle: Aluminium scrap leakage is a major concern in Europe. How can CANCOM’s technology help recyclers maximise the value of limited scrap resources?

Ivan Mayorov: In my opinion, aluminium scrap leakage is also often driven by information asymmetry and inefficient market matching. By enabling a transparent yet sovereign data exchange, CANCOM’s technology helps create a more efficient internal European market for scrap. Recyclers gain better visibility into available materials, quality and potential use cases, which reduces the likelihood that valuable scrap is exported or underutilised.

In addition, improved traceability and quality transparency increase trust between market participants. This makes it easier to allocate high-quality scrap to the most suitable applications, maximising its economic and environmental value.

The combination of better matching, higher quality output, and increased trust helps retain more value within Europe and reduces dependency on primary aluminium.

AL Circle: Can you please highlight a few achievements of your partnership with RecAL, such as faster material screening, better matching of recyclates or reduced process inefficiencies? How do CANCOM and RecAL plan to scale this digital ecosystem from pilot-level collaboration to broader industrial adoption across Europe?

Ivan Mayorov: The collaboration has already demonstrated tangible progress in several areas, especially the RecAL example of collaborative value creation enabling:

40% faster life cycle analysis
30% faster screening of new materials
95% lower energy consumption through the use of recycled aluminum

For that and more, RecAL was awarded the ÖGUT Environmental Prize 2025 in the category “Research & Innovation for the Circular Economy”.

From a strategic perspective, one of the most important outcomes is proof that a federated, cross-border data ecosystem can work in an industrial setting without compromising data ownership. The successful implementation of a decentralised, sovereign Dataspace architecture in a multi-partner environment will enable cross-border collaboration with non-EU members.

Scaling will focus on onboarding additional industrial partners across the value chain, expanding standardised data models and interoperability frameworks (especially creating data ecosystems with dataspaces like CATENA-X), integrating further business use cases, including AI-driven analytics and simulation, and further aligning with broader European initiatives such as IDSA to ensure compatibility and adoption at scale.

The goal is to evolve from a project-based ecosystem into a widely adopted industrial standard for aluminium recycling in Europe.

AL Circle: In your view, what are the biggest practical barriers to digital adoption in aluminium recycling: lack of standardised data, legacy systems, cost, and reluctance to share information or fragmented regulations?

Ivan Mayorov: The main barriers are less about technology itself and more about alignment across stakeholders, with a lack of internationally standardised data models and the later costly data mapping services. Addressing these barriers requires a combination of technology and governance. In this sense, digital sovereignty is not just a technical solution; it is a condition for industrial adoption. Only when companies trust the network security and infrastructure will they be willing to share data and unlock the full potential of a circular aluminium economy.

Baltic Dry Index slips as Capesize shipping rates weaken

Thu, 11 Jun 2026 16:53:00 +0530

The Baltic Exchange's Dry Bulk Index edged lower on Wednesday, ending a recent run of gains as weaker performance in the Capesize segment put pressure on freight rates.

The main index, which tracks shipping costs for dry bulk commodities, fell 47 points, or 1.7 per cent, to 2,771 points.

The decline was driven by the Capesize market, where rates softened during the session.

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The Capesize index dropped 140 points, or 3.2 per cent, to 4,301 points. Average daily earnings for Capesize vessels also declined, falling by USD 1,267 to USD 35,504 per day.

Capesize ships are typically used to transport large volumes of commodities such as bauxite ore, iron ore and coal on major global trade routes.

The latest drop in rates suggests some cooling in demand for larger bulk carriers, which had been supporting the dry bulk market in recent weeks.

Explore our e-magazine ALuminium LeaderSpeak 2026 for the latest industry insights and trends

21 tonnes of aluminium scrap vanish: The fraud that fooled weighbridges and cost INR 4.6 million

Thu, 11 Jun 2026 12:40:00 +0530

What began as a routine scrap movement operation at construction sites in Maharashtra has turned into a tale involving hidden sand compartments, manipulated weight records and 21 tonnes of missing aluminium scrap.

Police in Thane have registered a case against three individuals, including the owner of a scrap firm, a supervisor and a vehicle driver, for allegedly orchestrating a scheme that diverted aluminium scrap worth INR 4.6 million (USD 54,000) from construction sites linked to a prominent real-estate developer.

According to investigators, the alleged fraud revolved around a specially modified vehicle. “The vehicle's gross weight was recorded on the weighbridge with sand in the hidden compartment. The sand was later discharged through a hole beneath the box at an unknown location” before aluminium scrap was loaded onto the vehicle.

The result, police claim, was a misleading weight record that allowed larger quantities of scrap to be transported without immediately raising suspicion.

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The material was reportedly collected from multiple locations, including Palava, Dombivli and Upper Thane, where construction activities generated heavy quantities of recyclable metal.

The alleged irregularities came to light following an internal review of scrap movements. Subsequent inquiries led to the filing of a complaint with the police, who have since launched an investigation into the matter.

A case has been registered under the provisions of the Bharatiya Nyaya Sanhita relating to criminal breach of trust. Police officials said the investigation is ongoing, and further details are expected to emerge as the inquiry progresses.

Hedging for Recyclers: Join this webinar by Jorge Eduardo Dyszel to manage price risk and safeguard profits

Thu, 11 Jun 2026 11:30:00 +0530

In today's market, metal prices can shift sharply within days or even within hours, due to the rising uncertainty and market volatility. In this scenario, a recycler may purchase scrap at one price today, commit to a sales contract at another and then find margins being squeezed before the material is even processed. If this is compounded by currency fluctuations, inventory exposure, and delayed price fixation, the financial impact can become significant, and finding the right solution immediately would be required.

The reality is that many recycling businesses still operate without a structured approach to managing these risks. Moreover, for many aluminium recyclers, success is measured by operational efficiency, procurement strength and sales performance. Yet one factor often remains outside direct control: Commodity price volatility.

Alongside this, the market volatility is not just a temporary phenomenon but rather a constant feature of global metals trading. Recyclers, scrap traders and commercial teams face exposure at multiple stages of their operations, from procurement and inventory holding to sales commitments and contract negotiations. While businesses invest heavily in equipment, technology and operational improvements, financial risk management often receives far less attention.

The consequence? Unexpected margin erosion, pricing uncertainty, inventory valuation challenges and commercial decisions made under pressure. In an increasingly competitive recycling market, companies that understand and manage price risk may gain a distinct advantage over those that simply react to market movements.

Recognising the growing need for effective price risk management, AL Circle and Jorge Eduardo Dyszel have developed “Hedging for Recyclers – Become an Expert in 6 Hours”, a specialised course designed for metals industry professionals.

A better solution to master the risk: HEDGING

Before delving into hedging strategies in this context, let's first understand why hedging is deemed to be the ultimate solution here. Hedging is a smart strategy that helps recyclers cushion the blow from fluctuating metal prices. By using tools like futures and options, businesses can lessen uncertainty, safeguard their profit margins, and make better-informed decisions in the marketplace.

What does it actually mean for aluminium recyclers? For them, hedging can really provide an edge by softening the blow of fluctuating commodity prices on their profit margins, stock levels and contractual obligations. It allows businesses to make informed, strategic choices based on a solid grasp of the market, rather than just scrambling to respond to sudden price changes. Additionally, understanding how prices are formed, where exposure exists and how futures and options can be applied allows businesses to make more informed commercial decisions.

In order to help industry professionals have a clear understanding and approach to hedging, be a part of a course, “Hedging for recyclers – Become an expert in 6 hours" designed by AL Circle x Jorge Eduardo Dyszel.

Designed specifically for metal recyclers, scrap traders, commercial managers, procurement professionals and industry executives, the course will focus on real-world business challenges rather than theoretical concepts. Participants will gain practical insights into price risk management, volatility, price fixation, currency exposure, futures hedging and options strategies applicable to aluminium, copper, lead and other base metals.

Learning directly from a global expert

With over forty years of experience in commodity risk management and metals trading, Jorge Eduardo Dyszel has trained thousands of industry professionals worldwide on how to effectively apply hedging strategies. As a certified trainer by the LME and a globally recognised consultant, he focuses on helping businesses grasp price volatility, pinpoint risk exposure and leverage futures and options to enhance their commercial decisions. For aluminium recyclers facing increasingly unpredictable markets, his insights provide a unique chance to learn directly from someone who has spent decades navigating the complexities of commodity risk.

What will participants learn?

In the span of six sessions, attendees will gain clarity on:

How commodity prices are formed and why volatility persists
The critical exposure points within the recycling business model
Practical futures hedging techniques used in the metals industry
How options can help protect margins while retaining upside potential
Methods for developing an internal risk management framework
Real-world examples, simulations and market scenarios relevant to recyclers

Fee structure and registration

The programme will be conducted online, starting from 20 July 2026 through six one-hour sessions. Participants can register individually or as part of a group. Early bird registrations receive a 20 per cent discount, while groups of three or more qualify for a 25 per cent discount. The offer is only valid for registrations done in June.

For professionals looking to build that expertise, this programme offers a practical starting point. Register and learn how leading aluminium recyclers approach risk before the next wave of volatility arrives.