[SMM Aluminum Express News] Geopolitical tensions in West Asia have disrupted energy flows through the Strait of Hormuz, tightening LPG and natural gas supply to India. With gas diverted to households, according to the Aluminium Extrusion Manufacturers Association of India industrial supply has been cut by 50–80%, severely impacting energy-intensive aluminum extrusion. Around 25 plants have been shut down while ~200 operate at reduced rates, dragging monthly output from ~70,000 mt to ~45,000 mt. The supply-driven disruption is tightening downstream availability and supporting aluminum product premiums.

Hydro Begins Construction of Flagship Aluminium Recycling Plant in Torija, Spain On March 17, 2025, Hydro broke ground on its flagship aluminium recycling plant in Torija, Castilla-La Mancha, Spain. The €150 million facility is set to begin operations in 2026, producing 120,000 tonnes of aluminium extrusion ingots annually to supply key industries such as transportation, automotive, construction, and energy with low-carbon recycled aluminium. The new plant will operate in synergy with Hydro’s existing facility in Azuqueca, bringing their combined capacity to over 200,000 tonnes. Utilizing advanced sorting and production technologies, the Torija plant will recycle up to 70,000 tonnes of post-consumer scrap per year, manufacturing high-recycled-content specialty alloys. Hydro plans to hire 65 new employees ahead of the plant’s launch, reinforcing its commitment to aluminium circularity and European industrial competitiveness.

Since July, the domestic supply of aluminium scrap has remained tight. Coupled with multiple policy adjustments in the recycled metal industry, this has led to a decline in industry activity. Some secondary aluminium processing enterprises are facing difficulties in procuring aluminium scrap raw materials and poor industry profitability.

According to customs data, in July 2024, domestic aluminium extrusion (HS codes 76041010, 76041090, 76042100, 76042910, 76042990) exports amounted to 90,300 mt, down 7.48% MoM and up 0.83% YoY.

As late August approaches, the turning point for domestic aluminum ingot destocking is becoming apparent.

TAB Bank, a technology-driven, online bank serving small businesses, recently announced a $27.8 million credit facility for a southern California aluminium extrusion manufacturer as part of its commitment to providing business support during challenging times.