As voices from aluminium associations across US trade-allied nations grow louder, one consensus is becoming clear that the United States’ decision to increase tariffs on aluminium imports to 50 per cent is unlikely to benefit its global partners.

[Aluminium Scrap Recovery Growth Helps US Maintain Balance Despite Trade Shifts] In February 2025, the US exported 162,000 tonnes of aluminium scrap, up 5.88% month-on-month, while imports fell 5.84% to 59,700 tonnes, according to USGS data. Compared to February 2024, exports rose 2.53% and imports surged 24.8%. The rise in exports was supported by an 8% increase in domestic scrap recovery, reaching 321,000 tonnes, with 50.46% of it exported and 159,000 tonnes retained locally—forming a buffer ahead of a 25% import tariff effective March 12, 2025. Most of the recovered scrap came from new sources (184,000 tonnes), with the rest from old scrap (137,000 tonnes). Export volumes to India, Malaysia, South Korea, and China all increased, while exports to Thailand declined. On the import side, shipments from Canada dropped by 17.31%, while imports from Mexico rose. For January–February 2025, total exports reached 316,000 tonnes and imports 123,000 tonnes—both higher than a year earlier. This growing scrap recovery is helping the US maintain supply stability despite shifting trade dynamics.

[Aluminium Dunkerque inaugurates €13 million recycling furnace] On May 2025, Aluminium Dunkerque officially launched a €13 million melting furnace, known as Furnace 8, dedicated to aluminium recycling. The new unit will process 7,000 tonnes of aluminium scrap annually and deliver 20,000 tonnes of low-carbon metal, cutting CO₂ emissions per tonne of ingots by 10%. This equates to 25,000 tonnes of CO₂ and 96 GWh of electricity saved each year. The installation also created eight new jobs. Furnace 8 incorporates advanced technologies such as oxy-fuel burners and a closed-loop industrial water system, boosting environmental performance. With a capacity of 10 tonnes per hour, the furnace strengthens France’s domestic recycling capacity and supports industrial decarbonisation, especially in the automotive sector. Aluminium Dunkerque, France’s last major primary aluminium smelter, produces 300,000 tonnes of aluminium annually for use in automotive, defense, transport, and packaging industries.

[Hydro to Close Extrusion Site Amid Downstream Market Weakness] Norwegian aluminium producer Hydro has announced the closure of its extrusion site in Birtley, UK, and an anodising facility in Luce, France, citing continued weakness in the downstream aluminium market and compressed recycling margins. Additionally, Hydro will reduce recycling capacity in Puget, France by 30,000 tonnes. Decommissioning is already underway in Birtley and will be completed by the end of June, while the Luce facility will shut down by September. The company attributed the decision to tightened aluminium scrap supply and declining margins, which are impacting re-melt production. In response, Hydro aims to cut hot metal costs by USD 20–30 per tonne by 2030, with one-third of those savings targeted for realization by 2025. In its Q1 2025 financial update, Hydro reported an 18.3% drop in EBITA to NOK 1,174 million, driven by lower extrusion sales and weakened recycling margins. While European extrusion demand fell 1% year-on-year in Q1 2025, it rose 16% from the previous quarter, partly due to seasonal factors.

The return of U.S. aluminum tariffs under Trump’s administration has reignited global trade tensions, affecting supply chains and market trends. While tariffs aim to support domestic production, the U.S. still relies heavily on imports, driving up aluminum prices and raising costs for industries like automotive, construction, and packaging. Despite government backing, primary aluminum production remains limited, with recycling and secondary output expected to become more important. Global trade patterns may change as key suppliers like Canada look for new markets, while uncertainty over U.S. trade policies keeps market sentiment cautious.

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.

German yacht design and engineering studio iYacht has unveiled the Hu'chu 55, a substantial 55-foot solar-electric sailing catamaran made of 90 per cent recycled scrap aluminium.

According to SMM data, the comprehensive PMI index for the domestic aluminum processing industry in May 2024 recorded 41.70%, slipping into contraction territory.

This week, primary aluminium prices kept climbing for three consecutive days, with spot aluminium prices breaking through the 21,000 yuan/mt mark again.

According to customs data, the total imports of aluminium scrap from January to February were 289,000 mt, up 19.2% YoY.