Aluminum Scrap: A Key Global Trade Commodity for a Circular Economy
Some scraps are worth more than you can ever know, and aluminum scrap is definitely one of them. It has become a valuable resource in today's world, which is moving toward a circular economy and sustainable manufacturing. We all know that aluminum metal is popular for its salient features such as being lightweight, ductile, corrosion-resistant, non-magnetic, and an excellent conductor of heat and electricity. However, do you know that producing primary aluminum is highly energy-intensive? While recycling aluminum scrap takes about 95% less energy, and it can be repeatedly recycled without any loss in quality or key properties. And for this very reason, aluminum scrap has a high value in the recycling market. Whether it's for remelting into ingots or direct use in secondary manufacturing, this critical trade commodity continues to attract steady interest from scrap aluminum buyers, importers, and industrial recyclers. Markets such as Southeast Asia, Europe, and the Middle East have notably high demand for aluminum scrap, offering exporters valuable opportunities to tap into these regions and grow their businesses.
What’s Behind Market Demand for Aluminum Scrap and Where Does It Come From?
You may ask why there's such high demand for something like aluminum scrap, which is nothing but discarded metal. Well, there are many good reasons behind it, including its high recyclability, energy efficiency, and cost-effectiveness. In addition, recycling aluminum scrap offers environmental benefits as it reduces energy consumption, lowers greenhouse gas emissions, as well as, leads to less landfill waste. Moreover, we cannot deny the fact that aluminum is a valuable material used across various sectors (such as automotive, packaging, and construction), and recycling it allows for its continued reuse. All these factors add to the growing demand for aluminum scrap worldwide. But do you know where it comes from? Or, what are its sources? Let's find out!
Different Sources of Aluminum Scraps:
| Source Type | Description | Examples |
| Industrial Scrap | Generated during the manufacturing or fabrication process | Trimmings, machining chips, casting offcuts |
| Post-Consumer Scrap | Comes from products discarded after use by consumers | Used beverage cans, old appliances, foil waste |
| Construction & Demolition Scrap | Comes from building and infrastructure activities | Window frames, siding, roofing sheets, wiring |
| Automotive Scrap | Comes from end-of-life vehicles and auto part manufacturing | Car bodies, engine parts, wheels |
| Packaging Scrap | Includes aluminum used in consumer and industrial packaging | Cans, foil, blister packs, containers |
| Electrical Scrap | Comes from discarded electrical and electronic products | Conductors, cables, transformer parts |
| Aerospace Scrap | High-grade aluminum from aircraft manufacturing or decommissioning | Aircraft panels, structural parts, engine parts |
| Household Scrap | General aluminum waste generated at home | Cookware, utensils, furniture parts |
| Municipal Collection | Aluminum recovered through municipal recycling programs | Mixed household aluminum waste |
What Types and Grades of Aluminum Scrap Are Most Sought-After Worldwide?
Aluminum scraps can be categorized into a number of grades on the basis of various factors. The main factors include purity and alloy composition, form or source, and condition or treatment. Here is a detailed classification of different grades or types of aluminum scraps that every exporter or supplier should know to meet the specific market demand.
Aluminum Types & Grades:
| Category | Grade / Type | Description (Properties & Recycling Value) | Common Applications |
Purity / Alloy Composition | 1000 Series (Pure Aluminum) | - High-purity aluminum (=99%)
- Have excellent conductivity and corrosion resistance
- Highly desirable for recycling due to minimal alloying
| Electrical conductors, food packaging, chemical equipment |
| 3000 Series | - Manganese-alloyed aluminum
- Known for good formability and corrosion resistance
- Easily recyclable, especially in beverage packaging
| Beverage cans, roofing sheets, cookware |
| 5000 Series | - Magnesium-alloyed aluminum
- Offers strength, corrosion resistance, and weldability
- Recyclable & commonly used in marine and transport sectors
| Marine components, pressure vessels, automotive panels |
| 6000 Series (6061, 6063) | - Magnesium and silicon alloy
- Have good strength and corrosion resistance
- One of the most recycled aluminum types (especially from extrusion scrap)
| Window frames, pipes, architectural profiles |
| 7000 Series | - Zinc-alloyed aluminum
- Have very high strength but lower corrosion resistance
- More difficult to recycle (due to complex composition)
| Aerospace parts, high-performance bike frames |
| Commercial Pure Aluminum | - High-purity aluminum
- Used in specialized applications
- Offers high recycling value due to its clean composition & minimal contaminants
| Electrical systems, food processing equipment |
| Dural Aluminum | - An older term for aluminum-copper alloys
- Offers high strength
- More complex to recycle due to copper content (but valuable in certain sectors)
| Aircraft structures, industrial components |
Form / Source | Extrusion Scrap | - Comes from aluminum profiles
- Usually clean and often 6000 series
- High recycling value if sorted properly
| Window frames, heat sinks, architectural parts |
| Sheet Scrap | - Flat aluminum sheets, often offcuts or leftovers
- Easy to recycle if uncontaminated
| Construction, siding, roofing, packaging |
| Cast Aluminum | - Molded aluminum components
- May contain impurities and needs sorting before recycling
- Lower in value compared to wrought alloys
| Engine blocks, machinery parts, cookware |
| UBC (Used Beverage Cans) | - Clean post-consumer scrap with consistent alloy composition (mainly 3000 series)
- High volume and highly recyclable
| Beverage and food packaging |
| Turnings and Borings | - Small chips and shavings from machining processes
- Often oily or contaminated
- Needs cleaning before recycling
| Machine shops, metalworking facilities |
| Alloy Wheel Scrap | - Recyclable aluminum from vehicle wheels, usually 356 alloy
- High demand in secondary aluminum markets
| Automotive wheels, casting industry |
| Aluminum Cable Scrap | - Electrical wires and cables.
- Recycling value depends on insulation and alloy purity
| Power lines, telecom infrastructure |
| Foil Scrap | - Thin aluminum foil, usually from post-consumer waste
- Lightweight but high-purity
- May require cleaning or de-lamination
| Food and pharmaceutical packaging |
Condition / Treatment | Clean Aluminum | - Free from paint, insulation, or attachments
- Most desirable condition for recyclers
- Needs minimal processing
| Industrial offcuts, sorted consumer scrap |
| Painted Aluminum | - Aluminum with coatings or paint.
- Slightly lower recycling value due to need for de-coating
| Siding, panels, architectural facades |
| Dirty Aluminum | - Contaminated with other materials like plastic, rubber, or wood
- Requires cleaning or advanced separation
- Lower in value
| Demolition debris, mixed household waste |
| Lacquered/Laminated Scrap | - Aluminum with adhesive films or laminated plastic
- Needs specialized processing
- Less commonly recycled
| Food containers, aseptic cartons |
| Mixed Alloy Scrap | - Unsorted scrap containing multiple aluminum alloys
- Must be sorted to restore value
- Less desirable in unprocessed form
| Automotive shredders, municipal scrap |
You should keep in mind that these grades impact scrap value and recycling difficulty. Moreover, some varieties like 6063 aluminium scrap, 6061 aluminum scrap, and 7075 aluminum scrap fetch the highest recycling value. In addition, exporters of aluminum scrap often diversify their offerings and trade in related materials such as:
- Aluminum & its products ( including aluminum furniture, aluminum sulfate, aluminum oxide, aluminum foil, aluminum ingots, aluminum machinery, aluminum plate & aluminum sheets)
- In-demand metal scraps (including ferrous metal scrap, non-ferrous metal scrap, stainless steel scrap, copper scrap, iron scrap, zinc scrap, tin scrap, lead scrap, titanium scrap)
Aluminum Scrap Global Market Insights: Important Data for Export & Import
Here are the key market insights you should stay updated on:
Global Market Size:
| Metric | Value |
| Market Size (2024) | $6.55 billion |
| Market Size (2025) | $7.22 billion |
| Projected Market Size (2030) | $11.48 billion |
| CAGR | 9.78% |
Source: Research and Markets
Top 3 Aluminum Scrap Importers Worldwide:
| Country Name | Total Shipments |
| India | 355,445 |
| Pakistan | 65,734 |
| Malaysia | 16,120 |
Source: Volza
Aluminum Scrap Metal Price Trends:
The aluminum scrap price today is approximately €1,550 per metric tonne (~US?$1,680). However, it is subject to change due to various factors. (Source: MetalLoop)
While prices vary depending on regional market dynamics, scrap grade, purity, and processing requirements, the global average usually ranges between US?$1,100 and US?$1,700 per tonne.
How to Find Verified Aluminum Scrap Importers or Buyers?
Here are the most effective ways to find and connect with aluminum scrap metal buyers:
- You can start by exploring trusted B2B marketplaces (such as go4WorldBusiness). These platforms give you access to verified aluminum scrap buyers instantly.
- If you want to meet your potential buyers in person, you can visit trade fairs and exhibitions like Metal Recycling Conferences, Aluminum USA, Arabal (Middle East), or ScrapEx India.
- Many government-backed export promotion agencies (such as EEPC India or the U.S. Commercial Service) help you connect with aluminum scrap dealers.
- You can search online through long-tail keywords like 'aluminum scrap buyers near me' or 'scrap metal buyers'.
Frequently Asked Questions (FAQs):
1. Which countries import the most aluminum scrap?
India, followed by Pakistan and Malaysia, are the top aluminum scrap importers.
2. How is aluminum scrap classified?
Broadly speaking, aluminum scrap is classified into new scrap (sourced from manufacturing processes) and old scrap (sourced from discarded products). Aluminum scrap is further classified based on alloy composition, purity, form, and condition.
3. How can I start an aluminum scrap export business?
Follow these steps to start an aluminum scrap export business:
- Get necessary licenses and permits (including Import Export Code).
- Identify your target market.
- Find verified aluminum scrap buyers via B2B platforms (like go4WorldBusiness) or trade shows.
- Ensure quality control and meet the buyer's expectations when exporting scrap metals.
- Arrange for shipping and make sure to follow trade regulations.
4. What is the source of aluminium scrap?
Some common sources for aluminum scrap include:
- Industrial scrap
- Automotive Scrap
- Packaging Scrap
- Construction & Demolition Scrap
- Electrical Scrap
- Household Scrap
5. How to identify aluminium scrap?
You can use several methods to identify aluminum scrap:
- Magnet test: Aluminum is non-magnetic. So, if a magnet is attracted to the metal, it means the metal is not aluminum.
- Visual inspection: Aluminum has a unique silvery-white appearance. Also, it is much lighter than many other metals, such as lead, steel, or zinc.
- Scratch test: Aluminum is a soft metal, and it scratches easily. You can try scratching the metal with a sharp object to identify if it is aluminum.
6. How much for 1 kg of aluminium?
The current aluminum scrap price per kg can be around ?250-?285. However, it may vary.
7. Which aluminium grade is best for export?
Though the ideal aluminum grade depends on the application and desired properties, a large portion of demand usually comes from 6063 aluminum scrap buyers and 1050 aluminum scrap buyers.
8. Can aluminum rust?
No, aluminum does not rust.
9. Is aluminum waterproof and heatproof?
Aluminum is waterproof and usually heat-resistant. However, it may not always be heatproof, especially in extreme temperatures.
10. What is the aluminum scrap HSN code?
760200 is the aluminum scrap HSN code.
Latest News Related to Aluminum Scrap Global Trade:
In Q1 2025, Thailand increased its aluminum scrap imports from the U.S. while demand slowed in other countries. (Full Story: AL Circle)
