More US aluminium scrap heads to Asia amid domestic supply concerns

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The United States exported about 1.25 million tonnes of aluminium-bearing scrap in the first half of 2026, up 21 per cent from 1.03 million tonnes during the same period last year.

The figures, based on US Census Bureau data cited by Davis Index, show that more recycled aluminium is leaving the country even as domestic producers and policymakers debate whether the material should be retained to support US supply chains. 

Thailand and India lead purchases

Thailand was the largest destination for US aluminium scrap in the first six months of 2026, receiving 268,000 tonnes. India followed with 233,350 tonnes, while Malaysia, South Korea and Hong Kong rounded out the top five destinations with 160,700 tonnes, 139,500 tonnes and 136,200 tonnes respectively.

All five markets increased their purchases from the United States compared with the first half of 2025: Hong Kong rose up 51 per cent with South Korea right behind them at 38 per cent, following is India up 28 per cent then Malaysia and Thailand up 10 per cent and 8 per cent respectively. 

The figures show growing demand from Asian recycling and secondary aluminium markets. However, the destination data does not always indicate where the material is finally processed.

Hong Kong has little furnace capacity of its own, meaning some scrap shipped there may be transshipped to mainland China. Chinese sorting companies and secondary aluminium producers have also established operations in Thailand and Malaysia. This suggests that some US scrap shipped to Southeast Asia could eventually support Chinese-linked industrial production, although the final destination of individual shipments cannot be confirmed from the export figures alone.

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Supply concerns grow 

The rise in exports has intensified calls for the United States to retain more aluminium scrap at home.

The Aluminum Association describes aluminium scrap as a strategic asset and says the United States exports about 2 million tonnes annually, representing more than one-quarter of its total scrap supply. The association argues that retaining more scrap could strengthen domestic recycling, manufacturing and supply security.

The Secondary Aluminum Coalition for America has also raised concerns about the export trend. A spokesperson said the coalition was formed to address the current aluminium supply shortage and that scrap leaving the United States is contributing to the problem.

Recycled aluminium is an important source of feedstock for secondary metal production. Industry groups say greater access to domestic scrap could help US recyclers produce more aluminium while reducing dependence on imported primary metal and other raw materials.

The debate comes as the United States considers policies aimed at securing critical material supply chains. Supporters of export controls argue that valuable scrap should remain available for domestic manufacturers, while exporters and overseas buyers rely on international trade to move material to facilities equipped to sort and process it.

For now, the first-half figures point to a continued increase in US aluminium scrap exports, led by Thailand and India. The trend is likely to remain a focus of policy discussions over whether the country should prioritise open trade or reserve more recycled aluminium for domestic use.

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