China’s aluminium scrap imports fall 3.2% in H1 2026 amid supply and pricing pressures

China’s aluminium scrap market lost some momentum in the first half of 2026, with imports falling from a year earlier as higher prices, tighter overseas availability and weaker demand weighed on buying activity. Despite the decline, imports remained above the level recorded two years earlier.

China imported 981,000 tonnes of aluminium scrap from the World in H1 2026, down 3.2 per cent from 1 million tonnes in H1 2025. The latest volume was, however, 3.6 per cent higher than the 947,000 tonnes imported in H1 2024.

The H1 2026 total comprised 526,000 tonnes in Q1 and 455,000 tonnes in Q2, compared with 507,000 tonnes and 506,000 tonnes, respectively, in H1 2025.

Overseas supply becomes a key constraint

The weaker import performance came as Chinese buyers faced a less favourable international scrap market. Tighter overseas scrap availability, stricter export and environmental controls, and higher international aluminium prices all put pressure on imported supplies.

SMM said overseas aluminium scrap prices rose alongside the LME aluminium rally, reducing the availability of competitively priced recycled raw materials for Chinese buyers. It also cited tighter overseas scrap recovery and export policies, as well as environmental controls, as factors restricting the supply of imported recycled aluminium raw materials.

The rise in aluminium prices further increased the cost pressure. The LME three-month aluminium price reached USD 3,787.50 per tonne on June 2, its highest level in around four years, amid Middle East supply disruptions and logistics risks.

At the same time, weak Chinese demand limited the incentive to buy scrap. SMM said the price spread between primary aluminium and scrap had narrowed to historically low levels, weakening scrap’s cost advantage.

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Which countries supplied China’s scrap?

Thailand remained the largest supplier among the countries shown, although its shipments dropped sharply. China imported 199,000 tonnes from Thailand in H1 2026, down 24.0 per cent from 262,000 tonnes in H1 2025. Quarterly imports fell from 133,000 tonnes to 111,000 tonnes in Q1 and from 129,000 tonnes to 88,000 tonnes in Q2.

The United Kingdom moved in the opposite direction. Shipments increased to 129,000 tonnes in H1 2026 from 123,000 tonnes in H1 2025, a 4.9 per cent rise. UK supplies stood at 69,000 tonnes in Q1 and 60,000 tonnes in Q2 2026, compared with 61,000 tonnes and 62,000 tonnes, respectively, a year earlier.

China imported 99,000 tonnes from Japan in H1 2026, down 10.0 per cent from 110,000 tonnes in H1 2025. Imports declined from 56,000 tonnes to 51,000 tonnes in Q1 and from 54,000 tonnes to 48,000 tonnes in Q2.

Shipments from the United States stood at 65,000 tonnes, compared with 67,000 tonnes in H1 2025, a 3.0 per cent decline. US supplies dropped from 35,000 tonnes to 25,000 tonnes in Q1 but recovered from 32,000 tonnes to 40,000 tonnes in Q2.

Meanwhile, Australia supplied 61,000 tonnes, up 5.2 per cent from 58,000 tonnes in H1 2025. Imports increased from 30,000 tonnes to 36,000 tonnes in Q1, before falling from 28,000 tonnes to 25,000 tonnes in Q2.

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Scrap exports take a different path

While imports softened, China’s aluminium scrap exports moved higher. Exports to the World reached 460 tonnes in H1 2026, up 19.2 per cent from 386 tonnes in H1 2025.

The increase came despite a 22.1 per cent decline in Q1, as exports surged 69.9 per cent in Q2.

This gave China’s aluminium scrap trade a contrasting H1 picture: inbound scrap flows weakened under supply, price and demand pressures, while outbound shipments increased, driven by the sharp rise in Q2 exports.

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