US aluminium scrap recovery continues to strengthen into 2026 with a 14% jump Y-o-Y

US aluminium scrap recovery continued to strengthen at the start of 2026, with recycled metal production rising by double digits year on year, while primary aluminium output remained largely unchanged, according to the latest US Geological Survey (USGS) Mineral Industry Survey.

A total of 318,000 metric tonnes of aluminium was recovered from scrap in January 2026, up 14 per cent from the same month last year compared to 297,000 tonnes and 3 per cent higher than the revised December 2025 figure.

Of the total, 179,000 metric tonnes came from new scrap and 138,000 metric tonnes from old scrap.

Meanwhile, primary aluminium production totalled 58,000 tonnes during the month. Average daily output stood at 1,860 metric tonnes, unchanged from December 2025 and 1 per cent higher than January 2025.

Aluminium prices continue to rise

US aluminium prices strengthened significantly during the month.

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The average US spot price for primary aluminium reached USD 2.42 per pound in January 2026, rising 10 per cent from December and 71 per cent compared with January 2025.

On the London Metal Exchange (LME), the average cash price increased to USD 1.43 per pound, up 9 per cent month on month and 22 per cent year on year.

At the end of January, inventories of primary aluminium in LME-approved warehouses in the United States stood at 6,239 tonnes, down 24 per cent from the previous month. Stocks of aluminium alloy remained unchanged at 120 tonnes.

Tariff changes and smelter restart

The survey also highlighted recent policy developments affecting the US aluminium industry.

On April 2, 2026, US President Donald J. Trump announced the revised Section 232 tariff rules which covered aluminium, steel and copper imports. Under this, a 50 per cent duty on primary products and a 25 per cent duty on selected derivative products will be applied to the full customs value of imported goods rather than only to their metal content.

The measures form part of a broader effort to expand domestic aluminium production capacity.

Century Aluminum also announced on April 16, 2026, that it had restarted previously idled potlines at its Mt. Holly smelter in South Carolina. The facility has an annual production capacity of 229,000 tonnes and is expected to return to full production by June 2026.

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