[SMM Aluminum Flash News] RecAL Targets Higher-Value Aluminum Recycling in Europe

Herefordshire Council in the UK has expanded its household recycling rules to include aluminum foil, foil trays, foil-lined tubes and plastic tubes such as toothpaste and cosmetic packaging. The council said the move aims to simplify recycling for residents and reduce recyclable materials entering general waste streams. Under the updated guidance, households are advised to rinse and dry items before recycling, while aluminum foil should be scrunched into balls to improve sorting efficiency. The policy follows similar recycling expansions across other parts of England, reflecting broader efforts in Europe to improve recycling rates and strengthen the circular economy.

Novelis said the hot mill at its Oswego plant in New York is expected to resume production within the next few weeks, earlier than the previously expected end-June restart timeline. The facility experienced two fires in September and November 2025, both limited to the hot mill area with no injuries reported. The company said other key assets were unaffected. Recovery and commissioning activities are progressing faster than expected, and the restart is expected to help address pent-up demand and normalize shipments. The two fires caused an estimated USD 1.7 billion financial impact and reduced rolled product shipments by about 73 kilotons, negatively affecting adjusted EBITDA by around USD 53 million.

[Tightening Liquidity Expectations Strengthen, Aluminum Prices Under Pressure with Short-term Fluctuations] On the macro front, the US and Iran plan to sign a letter of intent to formally end hostilities and initiate 30-day negotiations, with geopolitical risk trends still remaining to be seen; the US Fed meeting minutes were far more hawkish than expectations, with most policymakers supporting policy tightening, and tightening liquidity expectations are overall bearish for metal prices. On the fundamentals side, supply gaps outside China and low inventory still provide bottom support, but inventory at high levels in China remains the core factor suppressing significant price rallies. Additionally, weak spot market transaction performance further limits upside room for aluminum prices. Aluminum prices are expected to continue the pattern of LME outperforms SHFE, fluctuating at highs in the short term.