[SMM Aluminum Flash News] Global Competition for Aluminum Scrap Intensifies as Circular Economy Becomes Industry Focus

Published: Jun 29, 2026 10:30

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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.

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