{"id":7336,"date":"2025-07-03T11:38:02","date_gmt":"2025-07-03T11:38:02","guid":{"rendered":"https:\/\/www.alcircle.com\/blog\/?p=7336"},"modified":"2025-07-03T11:38:03","modified_gmt":"2025-07-03T11:38:03","slug":"rising-from-the-scrap-chinas-ascent-and-the-global-surge-in-secondary-aluminium-production","status":"publish","type":"post","link":"https:\/\/www.alcircle.com\/blog\/rising-from-the-scrap-chinas-ascent-and-the-global-surge-in-secondary-aluminium-production","title":{"rendered":"Rising from the Scrap: China’s ascent and the global surge in secondary aluminium production"},"content":{"rendered":"\n

Climate imperatives, resource efficiency, and industrial resilience have positioned secondary aluminium as a critical player in reshaping the global metals landscape. Among the standout performers, China’s meteoric rise in secondary aluminium production<\/mark><\/a> serves as both a case study in policy-driven transformation and a harbinger of how circularity can redefine traditional heavy industries.<\/p>\n\n\n\n

China: Leading the charge in a circular transition<\/strong><\/p>\n\n\n\n

From around six million tonnes in 2010 to more than fifteen million tonnes in 2023, China has more than doubled its secondary aluminium output<\/mark><\/a> in just over a decade, now commanding nearly 38-40 per cent of the global total. This impressive trajectory reflects a synergistic blend of industrial demand, environmental urgency, and government policy.<\/p>\n\n\n\n

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The nation’s burgeoning appetite for aluminium from sectors<\/mark><\/a> such as automotive, packaging, and construction has created a robust internal demand loop. More recently, the dual carbon goals outlined in China’s 14th Five-Year Plan have intensified focus on scrap utilisation, green smelting, and closed-loop recycling\u2014cornerstones of the country’s new industrial playbook.<\/p>\n\n\n\n

Demand diversification: Beyond traditional ingots<\/strong><\/p>\n\n\n\n

The domestic demand for secondary aluminium reached more than twelve million tonnes in 2024, growing at a 12-13 per cent compound annual growth rate (CAGR)<\/mark><\/a> between 2020-2025. While traditional alloy ingots continue to hold the lion’s share of consumption, there’s a decisive shift toward value-added applications.<\/p>\n\n\n\n

Particularly, flat-rolled and extruded products have seen notable uptake, driven by increasing demand for remelt billets and wrought alloys\u2014a reflection of China’s evolving industrial base and the rising quality expectations of downstream users.<\/p>\n\n\n\n

Mobility-driven demand: NEVs and motorcycles in focus<\/strong><\/p>\n\n\n\n

China’s new energy vehicles (NEVs) sector is a beacon of this new demand. In 2024, the country produced over 10 million NEVs, a staggering 34.4 per cent year-on-year increase, accounting for more than 40 per cent of domestic automotive sales. While internal combustion engine (ICE) vehicles still dominate secondary aluminium usage, NEVs are pushing the envelope, demanding advanced, lighter, and more efficient alloys.<\/p>\n\n\n\n

Likewise, motorcycle production remains a stronghold for secondary aluminium. In 2024, China manufactured 19.97 million units, with secondary aluminium consumption<\/mark><\/a> in this segment rising 3.4 per cent to 760,000 tonnes. These mobility segments are not only critical from a volume standpoint but also vital to the ongoing shift toward lightweighting and emission reduction.<\/p>\n\n\n\n

Policy as a catalyst: From regulation to reinvention<\/strong><\/p>\n\n\n\n

Underpinned by the 14th Five-Year Plan and reinforced by its carbon neutrality roadmap, China’s policy environment has become a decisive lever. Subsidies, infrastructure development, and R&D incentives are supporting innovation-driven recycling, while enterprises relying on outdated tech or tax loopholes are being systematically edged out.<\/p>\n\n\n\n

The result is a fast-maturing industry where compliance, technology, and traceability are becoming the new benchmarks of competitiveness in China’s aluminium recycling space.<\/p>\n\n\n\n

Global overview: A rising tide across continents<\/strong><\/p>\n\n\n\n

While China sets the pace, Europe and North America remain vital pillars of the global recycling ecosystem. In 2023:<\/p>\n\n\n\n