Is aluminium scrap quietly rewriting the global metals playbook, especially with EU scrap tension, solar PV & India's new policies?

Aluminium scrap is quickly becoming a crucial battleground for the global metals industry. There is a mix of changing trade patterns, soaring prices, stricter regulations and urgent decarbonisation goals all coming together. Europe is increasingly worried about scrap leakage, while Asia is becoming more reliant on secondary metals. This shift is quietly transforming the delicate balance of availability, competitiveness and sustainability across various markets.

A tension over the EU's AL scrap?

The Secretary General of the Federation of Aluminium Consumers in Europe (FACE), Mario Conserva, with the CEO of Novelis Europe, Emilio Braghi, has called upon the EU to put a stop to the export of aluminium scrap. Why such demands? It indicates that Europe’s supply of secondary aluminium is at risk, especially since exports soared to over 1.2 million tonnes in 2024, accounting for about 10-11 per cent of global trade, primarily heading to Asia. Where, on the other hand, domestic recycling facilities are sitting idle due to a lack of feedstock, emphasising that scrap is a vital low-emission resource for maintaining competitiveness and if these exports continue, Europe could lose its recycling foundation.

Weekly Recycled AL and Sustaianbility Recap by AL Circle Pvt Ltd

Unfolding trade stories

Aluminium scrap imports by India nearly doubled from 0.88 million tonnes in 2015 to almost 2 million tonnes projected for 2025. The annual increase of about 8.6 per cent is mainly because of the limited domestic scrap generation and rising demand from foundries, rolling mills and extruders. By 2025, scrap imports are expected to surpass the 2 million-tonne threshold, making India around 85 per cent reliant on imported scrap.

China's imports of both aluminium scrap and aluminium alloy increased, with domestic scrap shipments reaching about 162,800 tons, marking a rise of roughly 25 per cent compared to the previous year in December 2025. Thailand held the lion's share, contributing 23.3 per cent of the total scrap imports. At the same time, unwrought aluminium alloy imports hit 93,100 tonnes, which is a decline of 11.8 per cent year-on-year but a solid increase of 27.2 per cent month-on-month. Uncover the complete scoop. 

Where are the scrap prices, consumption and availability heading? 

In Guangdong, China's aluminium scrap prices reached an all-time high as the average price for domestically-produced #6063 scrap surged by 7.9 per cent month-on-month, reaching USD 2,746 per tonne by mid-January. Concurrently, composite primary aluminium price climbed to nearly 19-year highs, hovering around RMB 24,645 per tonne. Read more here. 

The European Commission started a focused public consultation that will run until January 31, 2026, aiding in evaluating the availability of aluminium scrap in the EU market. This focused consultation will also determine if the current trade patterns, especially the record-high scrap exports, might be jeopardising domestic recycling efforts, decarbonisation objectives and industrial competitiveness. Full story here. 

With aluminium scrap imports by China reaching a five-year peak, the country's secondary usage jumped from 12.70 million tonnes in 2024 to 13.35 million tonnes in 2025, an increase of about 5.1 per cent year-over-year. This directly reflects on the world's largest aluminium market, which is deemed to be moving the world's largest aluminium market and leaning more towards scrap-based methods.

New innovations 

Tom Giddings, the Executive Director of Alupro, at Paris Packaging Week, will share the latest insights on aerosol recycling. At the event, Giddings will dive into the UK Aerosol Recycling Initiative (UKARI) and present some early trial data that highlights how targeted consumer education and awareness campaigns can really boost capture rates. The session titled “Spray, squirt and shake: the key to aerosols recycling” will cover new materials, upcoming project phases and ways for brands to get involved. Learn more. 

Every Can Counts US partnered with Open Water to launch a prominent recycling campaign at the Intuit Dome, the home of the LA Clippers. This initiative features a themed recycling cage filled with over 12 hundred aluminium cans, highlighting the importance of recovering used beverage cans (UBC) and promoting circularity. With this, every consumer is reminded that aluminium cans can be transformed back into new cans in less than 60 days on average.

India's leap in sustainability extends in Delhi at the Taj Surajkund Resort & Spa, where they have launched a 50 kWp solar power plant, which is set to produce about 73,000 kWh of green energy each year and is expected to produce around 1.82 million kWh over its lifetime. By this, the country not only lessens their dependence on traditional energy sources but also helps reduce its carbon footprint, aligning with IHCL’s Paathya framework. This initiative is part of a larger commitment to clean energy and resource efficiency, which also includes in-house water bottling, EV charging stations, wastewater treatment and rainwater harvesting.

Concern or not? 

With the inclusion of 8 million tonnes of aluminium, the global solar power installations have now surpassed 2.2 terawatts, primarily in frames and mounting systems. Aluminium takes up nearly 85 per cent of the materials used in photovoltaic components, which presents a significant challenge for manufacturers and recyclers when it comes to ensuring circularity at the end of the product's life. According to industry estimates from IRENA, an estimated between 1.7 and 8 million tonnes of solar panel waste is expected by 2030 and that number could skyrocket to between 60 and 78 million tons by 2050. Click here to dig deeper. 

India’s move towards decarbonisation 

To reduce greenhouse gas (GHG) emissions, India is adding secondary aluminium to its list of regulated industries, which already includes petroleum refineries, petrochemicals and textiles. Under the Greenhouse Gases (GHG) Emission Intensity Target Rules, 2025, a total of 208 industrial units will need to comply starting from the fiscal year 2025-26. This indicates that these industries are required to make measurable cuts in emissions per product unit based on a 2023-24 baseline and there will be penalties for those who don’t comply.

NITI Aayog India unveiled three decarbonisation roadmaps for sectors like aluminium, cement and MSMEs. The roadmap aims to draft a strategic path for striking a balance between cutting emissions and fostering industrial growth and competitiveness. The main goal here is to assist energy-intensive industries, like aluminium, in lowering their carbon intensity while also addressing global challenges such as the EU’s carbon border tax regime, whilst supporting broader climate commitments without hindering economic growth. 

NALCO plans to develop 200–300 MW of renewable power capacity paired with battery energy storage to reduce its heavy dependence on coal-based captive power, which currently accounts for about 80 per cent of its emissions. This way, it will support a more sustainable and low-carbon aluminium smelting process; however, it is still subject to renewable tariffs, which are deemed to be still higher than those for coal. The firm's strategy involves exploring power purchase agreements and boosting in-house wind and solar generation to ensure a reliable, round-the-clock energy supply.