EU secondary aluminium prices rise as scrap shortages tighten supply

EU secondary aluminium prices driven by scrap shortages

EU secondary aluminium prices have risen sharply due to tight scrap availability.
Low scrap generation across the region has constrained domestic feedstock for remelting.
Market participants are preparing for expected Spring 2026 EU scrap export restrictions.

The strong euro, currently near $1.17, has added trade complexity but has not weakened prices.
Aluminium producers report that current profit margins barely cover production costs.
Scarcity of floated frag scrap has particularly supported secondary ingot prices despite modest industrial demand.

Eastern European ingot producers indicate delayed deliveries from scrap suppliers.
Analysts expect EU secondary aluminium prices to approach €2,600 per tonne by the end of January.
Pressure diecasting ingot DIN226/A380 traded slightly higher at €2,430–2,530 per tonne, reflecting feedstock scarcity.

Market dynamics: CBAM and export restrictions shape pricing

The EU Carbon Border Adjustment Mechanism (CBAM) is influencing aluminium trade flows.
Higher emissions-related costs make imported aluminium less competitive than domestic material.
As a result, EU remelted aluminium gains a structural advantage over foreign ingot.

Logistics remain stable, and container costs are not disrupting pricing for now.
Scrap export outflows to Asia are slowing, while East Asian import prices fell by about $50 per tonne.
Overall, supply constraints rather than demand growth are sustaining the firm EU secondary aluminium market.

SuperMetalPrice Commentary:

EU secondary aluminium prices will likely remain buoyant as scrap shortages persist.
CBAM implementation will reinforce domestic remelted aluminium preference.
Producers with secure scrap supply chains will maintain margins, while import-dependent buyers face rising costs.
Market watchers should monitor Spring 2026 export restrictions for additional price support.