The New Development Era of Secondary Aluminium under China’s Carbon Strategy

Published: Oct 13, 2021 14:56
In China, the domestic aluminium scrap accounted for 89% of the total raw materials of secondary aluminium, meaning that the production of secondary aluminium has been more independent. China’s secondary aluminium production capacity has reached 14 million mt, accounting for about 30% of the global total secondary aluminium production. And it has become the world's largest producer of secondary aluminium.

SHANGHAI, Oct 13 (SMM) - In China, the domestic aluminium scrap accounted for 89% of the total raw materials of secondary aluminium, meaning that the production of secondary aluminium has been more independent. China’s secondary aluminium production capacity has reached 14 million mt, accounting for about 30% of the global total secondary aluminium production. And it has become the world's largest producer of secondary aluminium.

The whole industry has been developing in a more balanced pattern. While the scaled recycling enterprises have also become an important supply channel for aluminium scrap, indicating heightening industry concentration ratio.

During the "13th Five-Year Plan" period, China's secondary aluminium output totalled about 34.8 million mt, reducing the extraction of aluminium ore by 139.2 million mt, conserving the utilisation of standard coal and water by 120 million mt and 770 million cubic metre, respectively, and reducing the discharges of carbon dioxide and solid waste by 380 million mt and 696 million mt, respectively.

China's secondary aluminium industry has made great achievements in the past, but it should also be pointed out that China’s proportion of secondary aluminium in the total aluminium production is still at the level of developed countries in the eighties.

According to the resource and consumption forecast, China's aluminium consumption is expected to reach a peak by 2024, after which it will basically be in a plateau period, with primary aluminium production gradually shrinking due to policy and economic reasons; while the production of secondary aluminium will ramp up year by year, and the proportion in total consumption will gradually increase.

By 2025, China's secondary aluminium production will reach 11.5 million mt; the aluminium scrap utilisation efficiency and the added value of products will both be improved; the technical level of secondary aluminium and the equipment will be significantly enhanced; the degree of harmless treatment of aluminium ash and the utilisation rate of resources will be further improved. By 2030, the output of secondary aluminium will reach 18 million mt; the secondary aluminium processing technology will reach the international advanced level; a sophisticated industrial system will be formed; and the utilisation rates of aluminium ash and other solid wastes will reach 100%.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn
For more information on how to access our research reports, please contact:service.en@smm.cn
Related News
Before the holiday, the black chain is unlikely to see a trend-driven market [SMM Steel Industry Chain Weekly Report].
18 hours ago
Before the holiday, the black chain is unlikely to see a trend-driven market [SMM Steel Industry Chain Weekly Report].
Read More
Before the holiday, the black chain is unlikely to see a trend-driven market [SMM Steel Industry Chain Weekly Report].
Before the holiday, the black chain is unlikely to see a trend-driven market [SMM Steel Industry Chain Weekly Report].
This week, ferrous metals were in the doldrums, with coking coal and coke staging a mid-week rise. At the beginning of the week, financial markets experienced sharp fluctuations, dragging down sentiment in the ferrous chain and leading to a pullback in futures. Mid-week, Indonesia's cut to coke production quotas drove coking coal and coke futures to lead the gains, though the impact was more pronounced on thermal coal, while coking coal's rise was largely sentiment-driven and short-lived. In the latter part of the week, finished products continued their seasonal inventory buildup, and support from the raw material side weakened, causing the entire ferrous chain to pull back. In the spot market, with the Chinese New Year holiday approaching, purchasing activity slowed down further, with end-users only making limited, as-needed purchases at low prices.
18 hours ago
A00 Aluminum Prices Drop, Secondary Market Shows Divergence Amid Sluggish Demand
20 hours ago
A00 Aluminum Prices Drop, Secondary Market Shows Divergence Amid Sluggish Demand
Read More
A00 Aluminum Prices Drop, Secondary Market Shows Divergence Amid Sluggish Demand
A00 Aluminum Prices Drop, Secondary Market Shows Divergence Amid Sluggish Demand
[SMM Aluminum Alloy Daily Review] A00 aluminum prices dropped by 200 yuan/mt from the previous trading day to 23,140 yuan/mt, while SMM ADC12 prices edged down by 50 yuan/mt to 23,550 yuan/mt. Today, secondary aluminum market quotations showed some divergence, with some enterprises choosing to hold steady and wait, while others lowered their offers by about 100 yuan/mt. Driven by the price pullback, downstream purchasing mainly focused on restocking at lower levels, and transaction activity improved slightly compared to the previous period. Overall, downstream demand continued to contract, and fundamental support for prices weakened marginally. Before the holiday, secondary aluminum alloy prices are expected to remain in the doldrums at high levels, with the price center pulling back sligh
20 hours ago
The Most-Traded SHFE Tin Contract Opened Lower and Then Traded Stronger, Spot Market Recovers Amid Downtrend [SMM Tin Midday Review]
Feb 6, 2026 11:59
The Most-Traded SHFE Tin Contract Opened Lower and Then Traded Stronger, Spot Market Recovers Amid Downtrend [SMM Tin Midday Review]
Read More
The Most-Traded SHFE Tin Contract Opened Lower and Then Traded Stronger, Spot Market Recovers Amid Downtrend [SMM Tin Midday Review]
The Most-Traded SHFE Tin Contract Opened Lower and Then Traded Stronger, Spot Market Recovers Amid Downtrend [SMM Tin Midday Review]
[SMM Tin Midday Review: The Most-Traded SHFE Tin Contract Opened Lower and Then Traded Stronger, Spot Market Recovers Amid Downtrend]
Feb 6, 2026 11:59
The New Development Era of Secondary Aluminium under China’s Carbon Strategy - Shanghai Metals Market (SMM)