Japan’s aluminium scrap imports from the European Union in the first quarter (Q1) of 2026 have reported an almost 90 per cent year-on-year surge.In Q1 2026, Japan imported a total of 35,794 tonnes of aluminium scrap, of which 3,613 tonnes or 10.09 per cent, was imported from the EU.Comparing the Q1 volume over the years, a rising streak can be noted in Japan’s aluminium scrap imports from the EU: Q1 2026 – 3,613 tonnes, rising 89 per cent Y-o-Y from the 1,902 tonnes in Q1 2025 Q1 2025 – 1,902 tonnes, rising 40 per cent Y-o-Y from the 1,357 tonnes in Q1 2024 Concurrently, the annual shipment volume from the EU to Japan has witnessed a sharp Y-o-Y surge to 9,346 tonnes in 2025 from 5,815 tonnes in 2024. According to the data recorded in the International Trade Administration (ITA), the Q1 import value of Japan’s aluminium scrap from the EU is worth USD 3.26 million, marking a Y-o-Y gain of 45.54 per cent from USD 2.24 million recorded in Q1 2025. Hence, Japan’s aluminium scrap imports from the EU in Q1 2026 have risen Y-o-Y despite an almost 50 per cent hike in the pricing segment.

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 is often described as one of the most recyclable industrial materials, and the UK already has much of the infrastructure needed to support a circular aluminium economy. Collection systems are well established, recycling rates are strong, and remelting capacity exists across the supply chain. According to Nadine Bloxsome, CEO of the Aluminium Federation (ALFED), the challenge is no longer whether aluminium can be recycled, but whether the UK is keeping enough of the value created from that recycled material. ALFED estimates that recycling aluminium requires up to 95 per cent less energy than producing primary metal, making it an important contributor to industrial competitiveness as well as the country's net-zero ambitions. Despite this, the UK continues to rely heavily on imported primary aluminium. Around 68,000 tonnes were imported from the UAE, Bahrain, Oman, Qatar and Saudi Arabia during 2025. Recent geopolitical tensions and disruptions affecting energy-intensive smelting operations in the region have highlighted the risks that come with depending on overseas supply. The UK generates large volumes of aluminium scrap every year, yet much of the material leaves the country instead of being processed locally. Aluminium scrap exports to the United States increased from around 2,000 tonnes in 2024 to more than 23,000 tonnes in 2025, while total exports under HS Code 7602 rose from about 612,000 tonnes to more than 623,000 tonnes. During the same year, the UK also imported around 90,000 tonnes of aluminium scrap, showing that the issue is not a shortage of material but where that material is processed and where its value is ultimately created.

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.

The Material Recycling Association of India (MRAI) has urged the government to abolish the 2.5% Basic Customs Duty on aluminum scrap, arguing that the move would reduce raw material costs, improve the competitiveness of recyclers and downstream manufacturers, and strengthen the circular economy. The association noted that India imports 80-85% of its aluminum scrap demand and that secondary aluminum now accounts for around 35% of the country's total aluminum consumption.

The Southeast Asian secondary aluminum market remained weak this week, with aluminum scrap and ADC12 prices under pressure due to sluggish downstream demand. Lower overseas prices improved China's import window, although spot trading remained limited. Malaysia's Talon prices edged higher on tighter supply, while Thailand's UBC prices weakened. SMM expects the market to remain range-bound, with attention focused on LME aluminum prices, import margins, scrap policies, and demand recovery.

Itochu Metals and Daikin have formed a resource recycling partnership to recover high-purity aluminium and copper from used commercial air conditioners across Japan. Daikin estimates that a small mass-produced commercial air conditioner contains around 8 kg of copper and 7 kg of aluminium. If scaled to 300,000 units annually, the system could recover around 2,300 tonnes of copper scrap and 2,000 tonnes of aluminium scrap.

The UK has an ambitious aluminium scrap equation to solve. Domestic industry is forecast to require as much as 6 million tonnes of aluminium scrap for recycling by 2035 to support the government’s projected 8 million tonnes of aluminium demand across sectors. Yet much of the metal needed to support that future is already flowing in the opposite direction. The UK exports almost half the aluminium scrap it generates, while imports fill only 27 per cent of the resulting gap. The trend has continued into 2026, with scrap exports rising 9 per cent year on year to 217,611 tonnes during January–April, from 200,374 tonnes a year earlier. Scrap is becoming increasingly important at home, but overseas buyers are competing for the same material.

India's aluminium industry is debating aluminium scrap import duties and quality regulations. While the Aluminium Association of India (AAI) supports stricter quality controls, the Material Recycling Association of India (MRAI) and Aluminium Secondary Manufacturers Association (ASMA) are calling for the removal of the current 2.5% import duty to reduce raw material costs. Industry participants also noted that tightening scrap retention policies in Europe, the Middle East and the US could further influence India's future scrap import policy.

Aluminum scrap is rapidly becoming a strategic resource as the global aluminum industry shifts toward low-carbon production. Europe, China, India and the Middle East are all strengthening efforts to secure recycled aluminum through increased imports, new recycling capacity and policy measures. Growing demand, tightening scrap supply, CBAM implementation and clean energy development are making recycled aluminum a key pillar of future competitiveness, transforming scrap from a sustainability issue into a strategic supply chain resource.