Japan imported 35,794 tones of aluminum scrap in Q1 2026, including 3,613 tones from the European Union, up 89% year-on-year and accounting for 10.09% of total imports. Import value from the EU reached US$3.26 million, up 45.5% YoY. The EU ranked as Japan's third-largest aluminum scrap supplier, behind the United States (15,907 tones) and Taiwan (8,187 tones). EU aluminum scrap exports to Japan also increased to 9,346 tones in 2025 from 5,815 tones in 2024, highlighting growing trade flows between the two markets.

[Full-Scale US-Iran War Risks Climb, Strengthening Short-Term Upward Drivers for Aluminum Prices] Overall assessment suggests that with the volatile Middle East situation, persistent market concerns over interest rate hikes, and continuously recovering supply, the destocking trend will be hard to reverse in the short term. Amid the tug-of-war between longs and shorts, aluminum prices are expected to consolidate and adjust in the near term. Going forward, close attention should be paid to the progress of production resumptions in the Middle East, the trajectory of geopolitical conflicts, LME aluminum ingot inventory changes, and the status of China’s downstream processing orders.

In H1, the industry showed distinct characteristics: upstream raw material imports experienced a mix of hot and cold trends, while mid-and downstream aluminum processing product exports saw explosive growth. Diverging domestic and overseas demand, shifting overseas manufacturing orders, and changes in the overseas raw material supply landscape are jointly reshaping the trade pattern of China's aluminum industry chain.

[Mideast Situation Remains Volatile and Uncertain, Aluminum Prices Consolidate and Adjust] Overall, the Middle East situation remains volatile, market concerns over interest rate hikes persist, and supply continues to recover. However, the destocking pattern is difficult to reverse in the short term. Amid the tug-of-war between longs and shorts, aluminum prices are expected to consolidate and adjust in the near term. Going forward, close attention should be paid to the progress of production resumptions and the trend of geopolitical conflicts in the Middle East, changes in LME aluminum ingot inventories, and the condition of downstream processing orders in China.

[SMM Cast Aluminum Alloy Morning Comment: Aluminum Scrap Imports Post Third Straight Monthly Decline in June 2026, Continually Reshaping Aluminum Alloy Trade Patterns] Currently, the secondary aluminum alloy market remains in the off-season, with downstream order releases limited. End-user procurement stays need-based, overall trading activity is relatively subdued, and the demand side provides insufficient support for price increases. Meanwhile, aluminum prices remain...

[SMM Copper Scrap Express] In June, copper scrap imports from Thailand were 37,300 mt in physical content, accounting for 17.69% of total copper scrap imports for the month, surging 42.29% YoY and rising 41.41% MoM. Supply from Thailand recovered markedly in June, maintaining strong YoY growth, consistently providing a stable source for China's copper scrap market and serving as the core support for the import growth for the month.