Britain’s growing aluminium scrap exports are raising concerns about the long-term availability of a critical raw material for domestic industries. According to Make UK, aluminium scrap exports reached 624,314 tonnes in 2025, up 43% from 2016 levels, while shipments to India increased 94% to nearly 199,000 tonnes. Exports to the US surged 989% year-on-year to 23,560 tonnes after aluminium scrap was excluded from Section 232 tariff measures. Make UK estimates the UK could require up to 6 million tonnes of recyclable aluminium scrap to support total aluminium demand of 8 million tonnes by 2035. The organisation warned that continued scrap outflows could weaken domestic manufacturing, discourage investment and reduce supply chain resilience. It called for greater investment in scrap collection, sorting and processing infrastructure, improved recycling standards and measures to retain critical aluminium alloys within the UK’s circular economy.

New analysis from Make UK suggests the UK’s aluminium scrap collection and sorting sector will need to grow by around 25% annually to meet future demand outlined in the country’s Modern Industrial Strategy. The report highlighted that aluminium scrap exports have risen 84% over the past decade, reducing domestic availability of a key raw material for industries including defence, clean energy, digital technologies and automotive manufacturing. In 2024-25, UK scrap aluminium exports to the US surged from 2,000 tonnes to 24,000 tonnes after Section 232 tariffs excluded aluminium scrap, while exports to India reached approximately 200,000 tonnes. Make UK estimates total UK aluminium demand could reach 8 million tonnes by 2035, requiring around 6 million tonnes of recyclable scrap. The organisation warned that continued export growth could weaken domestic manufacturing competitiveness, investment and supply chain resilience, and called for greater investment in scrap collection, sorting and processing capacity within the UK.

US flat-rolled aluminium producer Aluminum Dynamics Inc. (ADI) has announced its withdrawal from the proposed aluminium recycling facility in Benson, Arizona. The project, planned on a 200-acre site, was designed to process aluminium scrap and supply recycled slab for the company’s downstream operations. ADI stated that differences with certain Arizona state officials created risks for the construction and future operation of the facility, leading to the decision to halt the project. The development had become one of the most debated industrial projects in the region, drawing concerns from local residents over environmental impacts while supporters highlighted potential job creation and circular economy benefits. The withdrawal effectively ends one of the largest proposed aluminium recycling investments in Arizona and removes a significant recycling project from the region’s development pipeline.

Recycle Now and Every Can Counts estimate that around 2 billion beverage cans could be consumed in the UK during the FIFA World Cup 2026. Based on current aluminium scrap values, the cans would be worth approximately GBP 28.5 million (USD 38.5 million) if fully collected and recycled. The organisations noted that aluminium cans remain one of the most valuable and widely recycled packaging materials, with used beverage cans valued at around GBP 1,000 per tonne. Aluminium can be recycled indefinitely without losing its properties, allowing a used can to return to store shelves as a new product in as little as 60 days. According to the groups, recycling around 10 billion aluminium cans annually in the UK helps prevent an estimated 3 million tonnes of greenhouse gas emissions. The campaign aims to further promote aluminium recycling and circular economy practices during the World Cup.

As resource security and decarbonization become increasingly important, major economies are strengthening efforts to retain aluminum scrap. From the EU's review of export controls and the U.S. strategic asset proposal to Japan's circular economy initiatives and policies in the UAE and South Africa, these developments could reshape global scrap flows and affect secondary aluminum markets.

The board of the Recycled Materials Association (ReMA) has given tentative approval to add a new specification called “ginger” to its ISRI Specifications booklet. The proposed ginger grade refers to wrought aluminium materials such as sheet, extrusion, and plate. According to ReMA, the material must be dry and meet strict limits. It should not contain more than 1 per cent free magnesium, 1 per cent free zinc, and 0.5 per cent analytical iron. Non-metallic content must also remain below 1 per cent. The material must be free from heavily oxidised pieces, airbag canisters, and any sealed or pressurised items. Any variations are to be agreed upon directly between buyers and sellers.

EU Commissioner Maroš Šefčovič announced that the European Commission will launch preparatory work on a new measure to curb aluminium scrap leakage, with adoption planned by spring 2026. Over one million tonnes of scrap leave Europe annually, undermining circularity and decarbonisation goals, while US Section 232 tariffs and strong Asian demand have already idled 15% of EU recycling furnace capacity. European Aluminium welcomed the move, with Director General Paul Voss calling it “a strong and timely statement of intent” and praising the EU’s decisive action to secure access to raw materials vital for Europe’s green transition.

The European Commission's latest roundtable concluded that pre-consumer scrap for aluminium and steel products will be included under the Carbon Border Adjustment Mechanism (CBAM) measures during its implementation in January 2026, whilst post-consumer scrap remains a good that will be unaffected by CBAM. This was announced as a measure to combat certain loopholes for resource shuffling in aluminium, with concrete policies still being work in progress, stated Martin Becker, deputy head of European Roundtable on Climate Change and Sustainable Transition (ERCST). However, if pre-consumer aluminium scrap cannot be properly distinguished from post-consumer scrap, the EU might not include pre-consumer scrap as a seperate entity within the CBAM agenda by 2026. Also to note, indirect emissions (Scopes 2 and 3) will remain excluded from CBAM boundaries, which will only be targeting Scope 1 Direct Emissions.

【SMM Scrap Aluminium Market Analysis】ASEAN’s aluminium scrap trade is emerging as a strategic pillar in the global shift toward low-carbon manufacturing. Thailand, Malaysia, and Vietnam dominate regional flows, but regulatory fragmentation and illicit trade challenge market stability. Recent U.S.–ASEAN critical-minerals deals and expanded ties with Canada and China highlight growing global interest in the region’s recycling capacity. To realise its potential, ASEAN must harmonise policies, strengthen traceability, and build a cohesive circular-economy framework for sustainable aluminium production.

【SMM Analysis】 Last week, the Aluminum Association (of America) released a white paper examining the flow of aluminium scrap of the United States, a sector that is starting to gain traction worldwide for its importance within the sectors and development goals of low carbon and circular sustainability goals, industrial competitiveness and strategic interests in national security. The white paper highlights several proposals made by the association, including the possible ban of UBC scrap exports from the USA totally.