U.S. Aluminum Scrap Export Policy Drives Market Volatility

U.S. Aluminum Scrap Export Policy and Its Market Impact

Aluminum scrap export policy is creating waves in the U.S. secondary aluminum market. At the S&P Global Energy Aluminum Symposium 2026, experts debated the effects of Section 232 tariffs and potential export restrictions on high-grade scrap. Panelists emphasized collaboration between scrap processors and consumers to craft effective strategies.

Chad Kripke, president of Kripke Enterprises Inc., noted that Section 232 tariffs on primary aluminum imports significantly increased prices across scrap grades. Meanwhile, the Midwest Premium reached $1.03 per pound, reshaping supply contracts and pricing strategies for companies like Novelis and Alter Trading. The tariffs prompted a shift toward shorter-term, flexible scrap contracts to mitigate volatility.

Daniel Berman of Alter Trading highlighted that quarterly contracts now dominate due to fluctuating scrap spreads. Brandon Bice of Novelis described this approach as a “positive paradigm shift,” allowing buyers and suppliers to structure innovative agreements while managing risk.

How Scrap Export Policy Influences Aluminum Pricing

Aluminum scrap export policy directly affects supply and demand dynamics in the U.S. market. High-grade scrap restrictions proposed by the Aluminum Association aim to secure domestic supply, yet stakeholders warn of unintended consequences. Kripke cautioned that imposing restrictions could harm recyclers and reduce overall recycling rates for used beverage cans (UBCs).

Bice stressed that policymakers must align industry goals with practical solutions. He argued that maintaining healthy recycling operations is critical for meeting domestic production needs while avoiding global supply disruptions. Meanwhile, imported scrap continues to fill U.S. demand due to the high Midwest Premium, widening price spreads between different scrap grades.

The conversation highlighted the complexities of balancing free-market forces with domestic policy goals. Experts agreed that a coordinated, supply-chain-wide approach is necessary to prevent policy from unintentionally destabilizing the market.

SuperMetalPrice Commentary:

The U.S. aluminum scrap export debate signals an inflection point for secondary aluminum markets. Tariffs and potential export restrictions are reshaping contract structures, pricing, and recycling economics. Stakeholders should monitor scrap arbitrage opportunities and policy proposals closely. Companies that proactively adapt supply chains and engage in cross-industry dialogue may gain a competitive edge. Meanwhile, the health of U.S. recyclers remains central to sustaining both pricing stability and domestic aluminum supply.