The global aluminium market is currently facing a tricky landscape filled with price fluctuations, changing trade patterns and an increasing focus on sustainability. From the rising scrap prices in China to India's growing influence in imports, along with policy changes in Europe and the energy hurdles in Australia, these regional factors are significantly impacting supply chains, costs and investment strategies throughout the aluminium industry.
Weekly Recap: Recycled AL & Sustainability by AL Circle Pvt Ltd
{alcircleadd}Aluminium scrap price on the rise, but what's fueling it?
Aluminium scrap prices have recently gone up due to tight supply, and a direct reflection could be seen in the regional differences. In key areas like Shanghai, Jiangsu, Shandong and Henan, prices are going up by RMB 50 to 100 per tonne. A similar trend is also mirrored in the primary aluminium. Meanwhile, regions like Jiangxi, Hubei, Foshan and Anhui have kept their prices steady from last week. The rising procurement costs are being driven by supply issues, even though demand from downstream sectors is only showing a slight recovery. Read here to uncover the complete story.
Baled UBC and shredded scrap grades have jumped by about RMB 50 to 100 per tonne week-on-week. In some areas, like Hunan, there have been total increases of RMB 400 per tonne for tensile scrap due to recent policy-related supply issues. While downstream demand is showing some signs of recovery during the traditional peak season, it's not quite strong enough to counteract the growing inventory or to support any significant price increases in the near future. Uncover more UBC and shredded scrap prices, click here.
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How is this impacting the price of cast aluminium alloy?
The most actively traded cast aluminium alloy, i.e., AD2511 futures contract, saw a slight increase of 0.20 per cent, rising by RMB 40 per tonne overnight to settle at RMB 20,405 per tonne, as optimistic traders ramped up their positions. Meanwhile, spot primary aluminium experienced a small dip, but scrap aluminium prices remained steady, buoyed by tight supply, even as downstream orders showed a gentle seasonal uptick. In Foshan, Ningbo and Wuxi, inventories of secondary alloy ingots have been on the rise, which is putting a cap on any short-term gains. To know in detail, read this.
How is the regional aluminium scrap reacting?
In H1 2025, India took the lead as the world's largest importer of aluminium scrap, bringing in around USD 1.96 billion worth, amounting to 875,466 tonnes. This marked an increase of about 7.5 per cent in volume and a significant 23 per cent in value compared to the previous year. India's share among the top five importers jumped from 30.8 per cent to 37.3 per cent. On the other hand, China's import volumes saw a dramatic drop of around 76 per cent, while the US moved up to second place with approximately USD 980 million. Germany's imports remained fairly stable and Thailand managed to push South Korea out of the top five. Get more into India's aluminium scrap here.
Romania has made impressive strides in recycling aluminium cans, because of the Deposit Return Scheme (SGR), private investments in recycling facilities and impactful campaigns with Every Can Counts. By July 2025, the return rate soared to 78 per cent and the recycling rate for the year has consistently remained above 70 per cent, which is more than double the 35 per cent rate from 2022. Cities like Bucharest, Timiș, Constanța, Cluj and Ilfov are at the forefront of this success, benefiting from strong citizen engagement, supportive policies and ongoing awareness initiatives. For details of the recycling drive, deep dive here.
TOMRA Recycling in Germany has just named Lars Enge as its new Executive Vice President (EVP), taking over from Katrin Fricke, effective right away. Enge has been part of the firm since 2022, serving as EVP of Group Strategy. During his time there, he rolled out TOMRA Horizon, which includes Feedstock and Reuse and played a key role in acquiring c-trace GmbH. This appointment shows the company's commitment to expanding its sensor-based sorting business worldwide, tapping into the increasing demand for recycling infrastructure and solutions that support a circular economy. Read the complete details here.
How's the technology blending with recyclability?
Novelis, the world leader in aluminium rolling and recycling, has recently upgraded its recycling plant in Guthrie, Kentucky, by installing a cutting-edge, high-capacity shredding and sorting system from WENDT. It is designed to yield high-quality recycled aluminium feedstock. WENDT's M6090 Shredder and EZR Pre-Shredder are capable of handling tough scrap materials like used beverage cans, automotive scrap and taint/tabor grades. The advanced sorting technology downstream guarantees that the material is high-purity and ready for the furnace, aligning perfectly with Novelis's ambition to boost the recycled content in premium flat-rolled aluminium, particularly for the automotive industry. Get more on the upgrade here.
Material Recovery Facilities (MRFs) 's AI-powered robotic sorting systems, across the US, are aiming to recover an impressive USD 6.5 billion worth of recyclables that slip through the cracks each year due to inefficiencies. These advanced robots utilise high-speed cameras, sensors and robotic arms to identify, clean and sort materials at speeds and accuracy levels that far exceed what human workers can achieve on fast-moving conveyor belts. This technology not only provides a scalable solution to minimise contamination and labour challenges but also presents a significant opportunity for recycling operators and downstream material consumers to enhance feedstock quality while reducing costs. Grab the details on the AI-powered robotic system here.
How is AL sustainability helping the end-users?
EcoDrop has rolled out reusable aluminium bottles for both tourists and locals in Victoria Falls. Each bottle comes with its own unique QR code, giving users access to purified water refill stations scattered throughout the town, including at the airport. These bottles double as eco-friendly souvenirs, with each bottle allowing for around 30 refills. This initiative not only helps cut down on plastic waste but also makes a positive impact on the community through charity contributions, all while improving water access. Read the complete story here.
A collaboration between Aditya Alumina and Centurion University for the opening of a new veterinary hospital shall benefit local animal owners and farmers in Odisha. This facility will provide diagnostic, surgical and treatment services all in one place, making it easier for people to access professional veterinary care for their livestock, pets and community animals. The goal of this partnership is to enhance animal health standards in the area, minimise losses for farmers and ensure reliable care is available right in their own neighbourhoods. For a more detailed discussion, click here.
Vedanta Aluminium has taken a significant step in the Lakhanpur block, Odisha, by empowering over 650 elementary teachers through a thorough orientation program aimed at bolstering foundational education. This initiative has provided teachers with essential skills in areas like lesson planning, classroom management, teaching aids, disaster preparedness, first aid and technology use. The ultimate goal is to enrich the classroom experience and improve learning outcomes for students in the region. To unlock the details, click here.
EGA launched the EGA Academy, boosting skill development and career growth for its employees at every level, all while supporting the UAE's ambitious industrial goals under "Operation 300 bn." "his initiative offers well-structured training pathways, sessions led by experts, hands-on experience in both industrial and corporate settings and a new mobile app that helps employees keep track of their development and career aspirations. Read this to know the whole detail.
Regional look at AL sustainability
In the UK, aluminium is recognised as both a critical and growth mineral in the upcoming Critical Minerals Strategy set for October 2025. This move highlights the government's acknowledgement of aluminium's vital role in boosting national resilience and driving industrial growth. With support from ALFED and the UK Aluminium Alliance, this new classification enhances aluminium's strategic significance, paving the way for better policy backing, increased investment, skills development, innovation and efforts in recycling and circularity within the UK metals sector. Details on the UK market are here.
Australia is facing the issue of renewable energy curtailment, especially in states like South Australia and Victoria, where solar output is being reduced by 35 to 65 per cent. Delays in building transmission and storage infrastructure are jeopardising both the stability of the grid and investments in clean energy. Major mining companies like South32, along with the government, are actively pursuing renewable solutions to tackle these challenges and ensure a reliable energy supply. To deep dive into the solution, read this.
Hydro has highlighted certain loopholes in the EU's BAM, which is set to be fully implemented in January 2026, undermining the competitiveness of EU aluminium. Remelted scrap enjoys a zero-emissions allocation, which allows foreign recyclers to dodge carbon costs, while EU producers are still hit with EU ETS charges. Meanwhile, imported downstream products are not covered by CBAM, putting EU producers at a disadvantage as they lose free allowances and face increasing input costs. To know the loopholes in detail, click here.
As recycling technologies improve, sustainability efforts grow stronger and regulations become stricter, aluminium is emerging as a vital, low-carbon material on the global stage. For businesses in the industry, adapting their strategies to these changing market trends is essential for staying competitive, fostering innovation and securing long-term success.
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