AL Circle Analysis: 243% US scrap rise, 6Mt European recycling & Germany’s power fix drive aluminium trade
Aluminium’s trade map is no longer drawn by smelters alone. Scrap flows, power contracts, industrial policy and specialist grades now shape who secures metal, at what cost and under whose rules. Ten recent developments across Europe, the US, Australia, Japan and Mexico show how recycling, energy and regulation are becoming the new levers of aluminium competitiveness. They also show where traders, exporters and policymakers may need to adjust. Scrap tug-of-war: the US pull, Europe’s leak and the recycling base at stake The pull starts with price. The US UBC scrap benchmark averaged USD 2,322.89 a tonne in July, USD 2,491.22 in August and USD 2,602.51 in September. That is a 12 per cent climb, and it came after a July that opened at USD 2,464.98 and fell to USD 2,270.76 within two days....
Europe’s 9M 2026 aluminium production jumps to 5.56Mt as smelter restarts gain ground
As the global aluminium supply chain continues to swing between shifts and crunches, how has Europe fared on the production front in the 2026 year-to-date calendar? Substantially well, going by the output figures. Between January and September 2026, the European continent, including Russia, has produced a total of 5.56 million tonnes of primary aluminium, building a significant year-on-year growth chart. The nine-month growth chart Set against the same period of 2025, the first nine months of 2026 show a clear lift in output. From January to September 2026, Europe, including Russia, produced 5.56 million tonnes of primary aluminium, raising the annual growth rate by 5.69 per cent year-on-year (Y-o-Y) over the 5.26 million tonnes produced in 2025. Explore the production, demand and...
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Aluminium extrusion market 2025-2035: Size, segmentation, cost drivers and outlook
The global aluminium extrusion market is entering a sustained growth phase, driven by construction, transportation, renewable energy and advanced manufacturing. This overview covers market structure, segmentation, cost drivers and the strategic trends expected to shape the industry through 2035. For the full dataset covering capacity, production, consumption and country-level trade flows by alloy, temper, finish and end-use, readers can access AL Circle’s report, “ The World of Aluminium Extrusions – Industry Forecast to 2032 ” or speak to our research desk . The market at a glance Building and construction remains the largest end-use sector, accounting for around 55 per cent to 56 per cent of global extrusion consumption, with applications ranging from fenestration and curtain walls to...
China’s aluminium dross generation is estimated to rise 3.3% in 2026: How technology and policy are shaping dross management
China accounted for nearly half of the world’s aluminium dross generation, underlining the scale of its primary aluminium production, secondary aluminium recycling and downstream processing industries. In 2025, the country generated approximately 2.75 million tonnes of aluminium dross, representing 47 per cent of the global total of 5.86 million tonnes Aluminium dross is an inevitable by-product of aluminium melting, smelting, alloying, casting and recycling. When molten aluminium comes into contact with atmospheric oxygen, a surface layer forms. This layer contains aluminium oxides, entrapped metallic aluminium, nitrides, carbides, chlorides, fluorides and other impurities and is commonly known as aluminium dross. The quantity and composition of dross can vary depending on the furnace...
US aluminium tariffs face a new test: Can downstream protection save domestic supply chain?
As the US Section 232 aluminium tariff framework issued by Donald Trump absorbs the import of aluminium downstream, semi-finished products and finished goods, it is expected to remove the original loopholes leading in the tariff wall. The point is straightforward: protecting primary metal alone does not necessarily protect the manufacturers that convert it into extrusions, rolled products, tubes and other value-added goods. A tariff wall around downstream products is therefore being presented as a way to prevent imported finished goods from gaining a cost advantage over US manufacturers that already face elevated domestic aluminium costs. The Coalition for a Prosperous America (CPA) opines that the imbalance between declining primary aluminium imports and rising downstream aluminium...
Aluminium casting market growth: Demand, end-use sectors & regional outlook to 2032
As industries worldwide accelerate lightweighting, electrification, automation and infrastructure investment, aluminium casting is entering a new phase of growth. Demand is rising across applications where weight, durability, thermal performance and design flexibility matter, from EV battery enclosures and structural components to industrial machinery and electrical equipment. Owing to this, AL Circle’s latest report, “ Global Aluminium Casting Market 2026-2032 ” highlights that the global aluminium casting consumption is forecast to grow at a CAGR of nearly 3.4 per cent between 2025 and 2032. While automotive and transportation will remain the primary demand engine, expanding applications across industrial machinery, electrical and electronics, and construction are expected to broaden...
AI, automation & digital manufacturing: The modern-day enablers of aluminium extrusion production
EXECUTIVE SUMMARY: The campaign imperative: The global aluminium extrusion sector is bifurcating. Facilities relying on historical intuition and manual trial-and-error are facing severe margin compression, while digital-first extruders are capturing record profitability. AL Circle’s Extrusion Campaign is actively tracking this transition. The Asian acceleration (die design): Driven by the need for massive scale, Chinese manufacturers pioneered Machine Learning Surrogate Models. By automating the minimisation of extrudate curvature, they have cut die design lead times from weeks to milliseconds. The European vanguard (advisory & automation): To combat high energy costs and labour shortages, European facilities initiated their digitalisation push early. They now lead the globe in AI-driven...
EU CBAM after H1 2026: Is carbon becoming aluminium's new €75/tCO₂ trade premium?
The European Union's Carbon Border Adjustment Mechanism (CBAM) entered its definitive regime on January 1, 2026, turning what had been a reporting exercise during 2023-2025 into a mechanism with an eventual financial liability. Aluminium sits alongside iron and steel, cement, fertilisers, electricity and hydrogen among the sectors covered. The European Commission fixed the CBAM certificate price at EUR 75.36 per tonne of CO₂ for Q1 2026 , followed by EUR 75.28 per tonne of CO₂ for Q2 . The prices are calculated from the weighted average auction clearing price of EU Emissions Trading System (ETS) allowances. Four quarterly prices will apply during 2026 before the system moves to weekly pricing from 2027. That does not mean every tonne of imported aluminium simply attracts its total carbon...
Southeast Asia’s aluminium extrusion boom: Five new projects and 8.47% CAGR - what’s driving the growth?
From a Hong Kong-backed plant in Vietnam to Malaysia's largest extrusion expansion in years and Indonesia's biggest extrusion press, Southeast Asia is witnessing a wave of aluminium extrusion investments. Although these projects span different countries, companies and end markets, they all point in the same direction: manufacturers increasingly see the region as the next major hub for downstream aluminium production. The region's growing importance is also reflected in its market outlook. The extruded aluminium profiles market was valued at approximately USD 4.54 billion in 2024 and is forecast to reach USD 6.86 billion by 2032, expanding at a CAGR of 8.47 per cent as per various industry sources. But now the question is: what is making Southeast Asia the preferred destination for...
Glass, plastic or aluminium? 74.8% recycling rate gives beverage cans a circularity advantage
A cold beer in a glass bottle, sparkling water in a PET bottle and an energy drink in a sleek aluminium can may occupy the same refrigerator shelf. From a sustainability standpoint, however, they are playing three very different games. The global beverage packaging industry expands while simultaneously being pushed towards lower carbon emissions, higher recycled content and better packaging circularity. Estimates compiled for this analysis place the broader global beverage packaging market at USD 157.7 billion in 2023, with the market projected to reach USD 222.1 billion by 2030 at a compound annual growth rate (CAGR) of 5 per cent. Alternative methodologies put the market at USD 184 billion in 2025 and USD 283.7 billion by 2034. Whichever methodology is used, one thing is clear that...
Asian aluminium bar, rod, profile trade: Vietnam tracks China’s 18% dip as Malaysia gains 21%
As global demand for value-added aluminium products continues to rise across construction, automotive, renewable energy, electrical equipment and industrial manufacturing, aluminium bars, rods and profiles have become one of the most actively traded downstream products. Asia remains at the crucial juncture of this trade, serving both as the world’s largest production hub and one of its biggest consumption markets. Shaping this market from both the supply and demand sides, ten key Asian economies have gained prominence. On the export front, China, Turkey and Saudi Arabia emerged as the region’s top suppliers. On the import side, the United Arab Emirates (UAE), India and Thailand ranked as the leading buyers. Meanwhile, Malaysia and Vietnam appear on both supplying and sourcing lists. A...
Why does a barrel of oil matter to aluminium producers? A hidden link between petroleum coke, prebaked anode and the metal itself
Oil price shocks are traditionally associated with their impact on transportation, aviation, paints and chemicals, tyres, rubber, and fertiliser industries, while the ripple effects on metallurgy often remain overlooked. The recent Middle East geopolitical crisis has renewed attention on aluminium’s strategic importance as a critical global metal supplier, but what about the impact of the oil price surge linked to the conflict on aluminium’s cost structure? Indeed, the aluminium industry does not consume crude oil directly in the smelting process. Still, it does through petroleum coke and carbon anodes used in the smelting process, which creates a significant connection between global oil markets and aluminium production costs. Between crude oil and aluminium – the petroleum coke...
66% and counting: China leads aluminium extrusions as India’s demand nears 858,000 tonnes
The centre of gravity of the global aluminium extrusion market is increasingly difficult to locate anywhere but Asia. China already sits at a scale that no other extrusion-producing country approaches. AL Circle's The World of Aluminium Extrusions – Industry Forecast to 2030 estimated China's aluminium extrusion usage at 20.94 million tonnes in 2023, against global consumption of approximately 31.5 million tonnes. That means, roughly two out of every three tonnes of aluminium extrusions consumed worldwide were used in China. The same study estimated that Chinese extruders had more than 30 million tonnes of annual capacity, while China's extrusion demand could approach 27.5 million tonnes by 2030. On the other hand, India operates on an entirely different scale, but perhaps on a more...
AL Circle Analysis: The new downstream aluminium investment map – where investors should watch
The aluminium industry's growth story is increasingly being shaped by value-added manufacturing rather than production volumes. Robust earnings, expansion projects and business diversification continued to strengthen confidence in downstream aluminium, with several producers raising their outlooks despite macroeconomic and geopolitical headwinds. At the same time, global trade trends favoured economies with stronger downstream capabilities, while weaker exports in some regions and governance challenges highlighted that growth across the industry remains uneven. Key takeaways Constellium reported record quarterly results, with revenue rising 31 per cent to USD 2.7 billion and net income increasing to USD 148 million. The company raised its full-year 2026 guidance and brought its 2028...
AL Circle Analysis: H1’26 bauxite export, softer alumina, new aluminium supply risks
The global aluminium value chain faced mixed signals in the first half (H1) of 2026, with production growth in key regions, evolving trade flows and emerging supply risks shaping the market. From Guinea’s record bauxite exports and China’s growing alumina and aluminium output to disruptions in Indonesia and the Middle East, offer important insights for producers, traders, suppliers and buyers. Guinea’s exports rise, miners under pressure, Africa seeks value addition During H1 2026, Guinea exported a record 114.8 million tonnes of bauxite , up 15 per cent year-on-year. Strong Chinese demand reinforced shipments despite rising operating costs for smaller mines. However, weak global bauxite prices, higher fuel and freight prices owing to the Middle East conflict and heavy rains have squeezed...
Brazil’s alumina ambition leaves a 13Mt red mud challenge: How effective is residue handling? The story behind one of aluminium's largest residues
Every year, Brazil produces more than 13 million tonnes of red mud, making it one of the world's largest generators of the aluminium industry's biggest industrial residue. Created during alumina refining, red mud is unavoidable-but the amount produced is never determined by the residue itself. It depends on everything that happens much earlier, from the quality of bauxite entering a refinery to how efficiently alumina is extracted. In 2025, Brazil mined 33 million tonnes of bauxite. Around 27 million tonnes of that ore was refined domestically, producing 10.86 million tonnes of alumina and ultimately generating around 13.5 million tonnes of red mud. The numbers appear straightforward, showing stable red mud generation alongside rising bauxite production. The explanation begins long before...
70.24Mt, six regions, one production story: Global alumina output stays steady in H1 2026 even after declines in Africa and Europe
Global metallurgical-grade alumina production remained almost unchanged in the first half of 2026, totalling 70.24 million tonnes, compared with 70.27 million tonnes in H1 2025-a marginal decline of just 0.04 per cent year on year. But that near-flat headline conceals one of the most eventful six-month periods the alumina industry has witnessed in recent years. While China's expanding refining capacity helped cushion the global output, Africa and Asia (excluding China) struggled with tightening bauxite availability and weakening refinery margins. North America remained constrained by operational changes at its only operating refinery, Europe continued to battle elevated energy costs, Oceania adjusted to the permanent loss of refining capacity, and South America stood out as one of the few...
Aluminium grabs the headlines, but the LME alumina price trend quietly rewrites margins, economics and supply risk
Aluminium prices command the market's attention because they determine the value of the finished metal that carmakers, packaging manufacturers and construction firms ultimately buy. Yet one step up the supply chain, a quieter benchmark has spent the past three years doing something aluminium rarely does: moving on its own terms. Alumina, the intermediate product refined from bauxite and smelted into primary aluminium, surged past USD 800 per tonne in late 2024, lost more than half its value within months and, by mid-2026, was trading near USD 330 per tonne even as aluminium climbed towards multi-year highs. Traders focused solely on the LME aluminium price would have missed much of that story. The LME alumina price trend is where it began. Reading the LME alumina price trend through its...
Is India ready to unlock the full potential of non-ferrous metal recycling?
India accelerates transition toward circular non-ferrous economy Duty reform targets downstream manufacturing competitiveness India’s non-ferrous metals sector covering aluminium, copper, zinc, and lead is at a defining moment. As the country advances toward its Viksit Bharat 2047 vision, recycling is emerging as a critical pillar for supply security, cost efficiency, resource efficiency, and decarbonisation. While policy momentum is strengthening, structural gaps across scrap visibility, infrastructure, formalisation, and import dependence continue to limit the sectors full potential. EPR rollout to formalise scrap flows and improve traceability The rollout of Extended Producer Responsibility (EPR) under the Hazardous and Other Wastes Second Amendment Rules, 2024, effective April 2025,...
US Fed keeps interest rates 1.75% higher than its target: What it means for the aluminium industry
The US Federal Reserve has kept the interest rates unchanged, keeping the benchmark federal funds rate at 3.50-3.75 per cent for the fourth consecutive meeting. The decision, approved unanimously in a 12-0 vote by the Federal Open Market Committee (FOMC), was widely expected by financial markets and keeps the benchmark rate at its lowest level since November 2022. At first glance, the decision appears to be a routine policy hold. But for the aluminium industry, it offers a clearer picture of the economic environment shaping demand, production costs and metal prices. The Fed's decision signals that inflation remains a concern, particularly as rising energy prices have altered expectations for monetary policy. Earlier this year, markets anticipated one or two rate cuts in 2026, but those...
