In February 2025, the United States recorded a 5.88 per cent month-on-month increase in aluminium scrap exports, reaching 162,000 tonnes compared to 153,000 tonnes in January, according to data published by the US Geological Survey (USGS). In contrast, aluminium scrap imports declined by 5.84 per cent month-on-month to 59,700 tonnes, down from 63,400 tonnes in the previous month.
On a year-over-year basis, both exports and imports demonstrated upward trends. Aluminium scrap exports rose by 2.53 per cent from 158,000 tonnes in February 2024, while imports surged by 24.8 per cent from 50,800 tonnes.
The uptick in export volume was likely driven by increased domestic aluminium scrap recovery, which totalled 321,000 tonnes in February, marking an 8 per cent rise from 297,000 tonnes in January. Of the total recovered volume, 50.46 per cent was exported. The remaining 159,000 tonnes constituted domestic inventory, compared to 144,000 tonnes held after exports in the previous month.
Mitigating trade imbalance with scrap recovery
The month-on-month increase in residual aluminium scrap retained in the domestic market post-export represented a strategic advantage for the United States, particularly in light of the impending 25 per cent import tariff on aluminium effective from March 12, 2025. This buffer in domestic supply might have helped mitigate the impact of reduced import volumes and supported continued industrial demand amid tightening trade conditions.
In a recent interview with AL Circle, Matt Meenan, vice president of external affairs at the Aluminum Association, has pointed out that aluminium demand in the US remains 3.5 per cent higher than the last year and 10 per cent more than a decade ago. To meet this demand, he has suggested for the increase in capturing and recycling more of scrap - something that can be done at a fraction of the cost of building new smelters.
Of the total scrap recovered in February, 184,000 tonnes of aluminum was recovered from new scrap, and 137,000 tonnes was recovered from old scrap.
The United States’ aluminium scrap imports decreased in February due to the decline in trade volume from Canada by 17.31 per cent M-o-M from 36,400 tonnes. However, from Mexico, the second-largest scrap exporter to the US, the aluminium scrap trade volume stood at 21,600 tonnes versus 19,800 tonnes.
On the export front, the United States aluminium scrap supplies increased to India, Malaysia, South Korea, and China. Exports to India grew by 10.45 per cent M-o-M from 22,000 tonnes to 24,300 tonnes, while that to Malaysia increased by 36.63 per cent from 17,200 tonnes to 23,500 tonnes. According to USGS, the exports to South Korea and China climbed up by 16.28 per cent and 10.55 per cent, reaching 20,000 tonnes and 22,000 tonnes, compared to 17,200 tonnes and 19,900 tonnes in the previous month.
Important to mention, the United States’ aluminium scrap exports to Thailand slumped by 7.9 per cent M-o-M from 43,000 tonnes to 39,600 tonnes, but did not affect the overall trajectory.
In the first two months, the United States total aluminium scrap exports amounted to 316,000 tonnes, slightly up from 313,000 tonnes a year ago, while the imports stood at 123,000 tonnes, compared to 103,000 tonnes.
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