The market has recently begun to speculate the impact of aluminium scrap on primary aluminium consumption in the coming year. However, the impact of scrap aluminium on primary aluminium will be less than anticipated as it has a number of drawbacks. The fundamental reason for this is because all aluminium scrap is alloyed, and aluminium purification is expensive. As a result, only downstream processes may utilise the recovered aluminium scrap.
Due to the high element composition requirements, there is not a substantial volume of aluminium scrap available for usage in aluminium rods and primary alloys. For manufacture, almost only primary aluminium or even low-iron, high-purity aluminium may be utilised. Only three industries may use recycled aluminium scrap: classic secondary cast aluminium alloy, secondary aluminium rod, and aluminium plate/sheet, strip, and foil. Approximately 7.5:1.5:1 is the current ratio.
The automotive industry is one of the main users of the secondary aluminium. For a long period, the reasonably mature ADC12, A380, and other aluminium alloy ingot brands may be directly made utilising 100 percent aluminium scrap. The cost of basic aluminium offers no benefit. Traditional fuel-powered cars, on the other hand, are gradually being replaced by new energy vehicles in the automobile industry. Due to increased material performance requirements and severe element requirements, new energy vehicles can presently only be manufactured using primary aluminium.
The majority of secondary re-melting rods are made of the 6063 alloy of aluminium. Almost all secondary aluminium rods made from 100 percent scrap aluminium are non-standard aluminium rods that can only be utilised to make non-standard construction materials. And real estate is a big part of their spending. A minor proportion of 6061 secondary aluminium rods is being utilised in the fabrication of secondary aluminium templates, in addition to 6063 aluminium rods. The real estate business is very intimately linked to consumerism.
Because of its high aluminium content, 1/8 series aluminium scrap may be utilised as a straight replacement for A00 aluminium ingots. Aluminium cable scrap and 1 series normal plate/sheet and strip scrap are the principal sources, accounting for just a tiny percentage of the total aluminium processing industry. And there's little chance of a significant increase.
As a result, aluminium scrap is unlikely to have a significant impact on primary aluminium in the near future unless demand for gasoline-powered vehicles and real estate increases, the recycling link's sorting capacity improves significantly, or breakthroughs in aluminium scrap purification technology are made. The pace of replacing primary aluminium with scrap aluminium will continue to be gradual.
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