[Weekly Review of Aluminum Scrap and Secondary Aluminum]Primary-Scrap Spread Narrows Sharply as ADC12-A00 Premium Hits a Record High: Has the Window Opened for Primary Aluminum to Replace Scrap?

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.

[SMM Aluminum Express News] Constellium has commissioned Hertwich Engineering to supply a new reverberatory melting furnace at its recycling plant in Neuf-Brisach, France. The furnace will increase recycling capacity by 25,000 tpy and reduce greenhouse gas emissions by around 10,000 tones of CO₂ annually, supporting Constellium’s decarbonization strategy and growing demand for low-carbon, recycled aluminum products in Europe.

[SMM Aluminum Express News] Emirates Global Aluminium has inaugurated the Al Taweelah Aluminium Recycling Plant, the largest aluminum recycling facility in the UAE, with a production capacity of 185,000 tpy. The plant processes post-consumer and selected pre-consumer aluminum scrap into low-carbon billets and T-bars marketed under the RevivAL brand. The facility began producing recycled aluminum in February 2026, with full ramp-up expected within six months, subject to scrap availability. The project makes EGA the largest consumer of aluminum scrap in the UAE and increases the company's global recycling capacity to more than 400,000 tpy across the UAE, Europe, and the United States, with a further 200,000 tpy under development.

The UK Government is strengthening its Critical Minerals Strategy by investing in domestic extraction, processing, recycling and supply chain development to enhance resource security and economic resilience. The Aluminum Federation (ALFED) welcomed the move, noting that aluminum was officially designated as both a Critical Mineral and a Growth Mineral in 2024 under the UK's Vision 2035 framework. ALFED urged policymakers to place greater emphasis on aluminum recycling, remelting, sorting and supply security advanced processing to strengthen domestic supply chains and promote circular manufacturing. The federation highlighted that recycled aluminum can be reused indefinitely while requiring only around 5% of the energy needed to produce primary aluminum, making it a key material for low-carbon manufacturing and long-ter.

Aluminum scrap is rapidly emerging as a strategic resource as the global industry accelerates its transition toward low-carbon production. Secondary aluminum requires only around 5% of the energy needed for primary production, making recycled metal increasingly attractive for both economic and environmental reasons. However, tightening scrap availability has intensified global competition. Europe is estimated to require an additional 1 million tones of aluminum scrap to meet its circular economy goals, while China has increased scrap imports and India is seeking to secure overseas supply amid concerns over potential EU export restrictions. At the same time, major investments in recycling capacity, together with carbon policies such as the EU's CBAM, are reinforcing the importance of recycled aluminum. Industry observers believe future competitiveness will increasingly depend on access to scrap resources, recycling efficiency and low-carbon supply chains.

CMR Green Technologies, India’s largest non-ferrous metal recycler, is expected to make a strong stock market debut after its IPO was subscribed more than 127 times. The INR 6.31 billion (USD 66.3 million) offering attracted strong interest from institutional, non-institutional and retail investors, while grey market premiums indicate a potential listing gain of around 36%. CMR is a leading supplier of secondary aluminum products with an estimated 42-45% share of India’s automotive cast alloy market, serving customers including Maruti Suzuki, Honda Cars India, Bajaj Auto and Hero MotoCorp. The company operates 13 recycling facilities across India and produces recycled aluminum alloys, billets and other non-ferrous metal products. Growing demand from electric vehicles, recycling initiatives and decarbonization efforts is expected to support the company’s long-term growth outlook.

German aluminum producer Trimet has announced a series of investments to expand its recycling operations across Germany. The company has increased capacity at its Gelsenkirchen recycling plant through the installation of new melting units, adding up to 80,000 tones of annual recycled aluminum output. From August 2026, the site will begin using hydrogen-rich process gas to reduce CO₂ emissions. Trimet is also building a new recycling facility in Hamm, scheduled to start operations by the end of 2026, focusing on aluminum scrap sorting, processing and logistics using laser-based analysis technology. In addition, storage upgrades at its Essen site will add around 16,000 tones of capacity. The company is also expanding its portfolio of high-recycled-content aluminum alloys for automotive and industrial applications.

Toyota Motor Manufacturing UK has established a closed-loop aluminum recycling system at its Burnaston plant in Derbyshire, creating what it describes as a European-first process for recovering aluminum from end-of-life vehicles and reusing it in new hybrid vehicle production. Recycled aluminum from discarded alloy wheels is sent to Toyota’s Deeside engine plant in Wales, where it is processed into hybrid powertrain components before returning to Burnaston for installation in new Corolla vehicles. Toyota produced its first vehicle containing recycled aluminum from this system on March 19, 2026. The Burnaston facility serves as a pilot site, with a second Circular Factory planned for Wałbrzych, Poland, later this year.

Trimet is expanding its recycling network in Germany to strengthen raw material security and support low-carbon aluminum production. The company has increased capacity at its Gelsenkirchen recycling facility, where new melting units will add up to 80,000 tones of annual recycled aluminum capacity. Starting in August 2026, the site will also use hydrogen-rich process gas to reduce CO₂ emissions. A new recycling facility in Hamm is scheduled to begin operations by the end of 2026, featuring laser-based scrap sorting technology for precise alloy separation. Trimet has also expanded storage capacity at its Essen site, adding around 16,000 tones of handling capacity. The company continues to develop high-recycled-content aluminum alloys for automotive and structural applications.