Get the latest insights on price movement and trend analysis of Aluminium Scrap in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East Africa).

Aluminum rose to 2,573.35 USD/T on August 1, 2025, up 0.30% from the previous day. Over the past month, Aluminum's price has fallen 1.90%, but it is still 13.69% higher than a year ago, according to trading on a contract for difference (CFD) that tracks the benchmark market for this commodity. Aluminum - values, historical data, forecasts and news - updated on August of 2025.

Graph and download economic data for Producer Price Index by Commodity: Metals and Metal Products: Aluminum Base Scrap (WPU102302) from Jan 1960 to Jun 2025 about aluminum, metals, commodities, PPI, inflation, price index, indexes, price, and USA.

The annual producer price index of aluminum scrap in the United States averaged ***** in 2023, with 1982 used as the base year (1982 = 100). This represented a year-over-year decrease of ** percent. The previous year had seen the highest figure recorded since the turn of the century.

According to Cognitive Market Research, the global Aluminium Scrap market size is USD 8152.2 million in 2024 and will expand at a compound annual growth rate (CAGR) of 8.00% from 2024 to 2031.

North America held the major market of more than 40% of the global revenue with a market size of USD 3260.88 million in 2024 and will grow at a compound annual growth rate (CAGR) of 6.2% from 2024 to 2031.
Europe accounted for a share of over 30% of the global market size of USD 2445.66 million.
Asia Pacific held the market of around 23% of the global revenue with a market size of USD 1875.01 million in 2024 and will grow at a compound annual growth rate (CAGR) of 10.0% from 2024 to 2031.
Latin America market of more than 5% of the global revenue with a market size of USD 407.61 million in 2024 and will grow at a compound annual growth rate (CAGR) of 7.4% from 2024 to 2031.
Middle East and Africa held the major market of around 2% of the global revenue with a market size of USD 163.04 million in 2024 and will grow at a compound annual growth rate (CAGR) of 7.7% from 2024 to 2031.
The Aluminium held the highest Aluminium Scrap market revenue share in 2024.

Market Dynamics of Aluminium Scrap Market

Key Drivers of Aluminium Scrap Market

Rising Primary Aluminium Prices to Increase the Demand Globally

The price fluctuation of raw aluminum greatly impacts the demand for aluminum scrap. The demand for aluminum scrap increases because companies look for more affordable options when basic aluminum prices rise. This change happens because it becomes more cost-effective to employ scrap aluminum in manufacturing operations rather than paying more for primary aluminum. As a result, industries are increasingly using aluminum waste as a replacement material to save costs without sacrificing production efficiency. As a result, changes in primary aluminum pricing significantly impact market dynamics, with increased prices frequently resulting in an increase in the demand for aluminum scrap across various industrial sectors.

Growing Demand for Aluminum to Propel Market Growth

The need for aluminum scrap is rising due to the growing demand for aluminum in various industries, including packaging, construction, and transportation. The need for scrap aluminum increases with industries' continued reliance on aluminum due to its lightweight, strong, and recyclable qualities to meet production demands. Since aluminum is a necessary component of many manufacturing processes, there is a direct relationship between the demand for aluminum goods and the demand for aluminum scrap. This pattern emphasizes how crucial aluminum scrap is to maintaining production cycles and satisfying the growing need for aluminum across various industrial applications.

Restraint Factors of Aluminium Scrap Market

Strict Quality Requirements to Limit the Sales

Strict quality standards present a major obstacle in the market for aluminum scrap. Every application has unique requirements for quality, and not meeting these requirements can lead to rejection and financial losses for processors and collectors alike. Proper sorting and minimal contamination are essential to guarantee that scrap satisfies the requirements for usage in manufacturing processes. It is imperative to allocate resources toward sophisticated sorting technology and enforce stringent quality control methods to minimize the likelihood of rejection and preserve the integrity of the aluminum scrap supply chain. Strict adherence to quality standards protects against monetary losses and builds industry confidence and dependability, ensuring aluminum scrap's continued viability as a valuable resource.

Ultimately, as the industry seeks equilibrium between scientific innovation and practical utility, the challenge posed by limited stability becomes a catalyst for refinement, prompting the Aluminium Scrap market to navigate the delicate balance between the inherent characteristics of these compounds and the demands of robust sales and accessibility.

Impact of COVID-19 on the Aluminium Scrap Market

The COVID-19 outbreak has significantly impacted the market for aluminum scrap. Global supply chain disruptions, a decline in production, and varying demand have presented the sector with formidable obstacles. Movement restrictions and lockdown measures made collecting and processing scrap more difficult, affecting the supply of raw mate...

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Aluminum Scrap Recycling Market Size 2025-2029

The aluminum scrap recycling market size is forecast to increase by USD 4.38 billion, at a CAGR of 10.7% between 2024 and 2029. The market is driven by increasing environmental concerns, with the focus on reducing energy consumption and minimizing pollution.

Major Market Trends & Insights

APAC dominated the market and accounted for a 60% share in 2023.
The market is expected to grow significantly in North America region as well over the forecast period.
Based on the End-user, the casting segment led the market and was valued at USD 3.99 billion of the global revenue in 2023.
Based on the Type, the old scrap segment accounted for the largest market revenue share in 2023.

Market Size & Forecast

Market Opportunities: USD 6.63 Billion
Future Opportunities: USD 4.38 Billion
CAGR (2024-2029): 10.7%
APAC: Largest market in 2023

This trend is leading to a growing demand for sustainable recycling methods, such as the introduction of Laser Induced Breakdown Spectroscopy (LIBS) and solid-state recycling. However, a significant challenge facing the market is the decreasing recycling rate of used beverage cans. This trend poses an obstacle for market growth, as these cans represent a substantial portion of the aluminum scrap supply. Producers must innovate and implement effective strategies to address this challenge and ensure a consistent supply of scrap material.

Additionally, the adoption of advanced recycling technologies and the expansion into emerging markets offer opportunities for market expansion and growth. Companies in the aluminum scrap recycling industry must remain agile and responsive to these trends and challenges to capitalize on market opportunities and maintain a competitive edge.

What will be the Size of the Aluminum Scrap Recycling Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
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The market continues to evolve, driven by the ever-increasing demand for sustainable industrial practices and the need for energy efficiency. Industrial scrap processing plays a pivotal role in this dynamic industry, with continuous advancements in contamination removal techniques and recycling plant automation. Energy efficiency metrics and emissions reduction strategies are key priorities for recycling facilities, leading to innovations such as eddy current separation and chemical composition analysis for material characterization. Baling press optimization and logistics and transportation solutions streamline the recycling process, while material traceability systems ensure the quality and purity of reclaimed aluminum. Air classification technology and waste stream management are essential components of the metal recovery process, enabling the separation of various alloys through alloy separation methods. The automotive segment is the second largest segment of the end-user and was valued at USD 2.11 billion in 2023.

Secondary aluminum production facilities employ process optimization strategies and quality control procedures to maintain high standards. Aluminum scrap sorting employs density separation methods and shredder technology advancements to maximize efficiency and reduce water usage. Particle size analysis is crucial for ensuring the optimal size and shape of recycled aluminum for various applications, including aluminum can recycling and end-of-life vehicle recycling. Scrap metal pricing remains a significant factor in the market, with fluctuations influenced by supply and demand dynamics. The aluminum scrap recycling industry is expected to grow by approximately 5% annually, as businesses and consumers increasingly recognize the importance of sustainable production and recycling practices.

For instance, a leading recycling facility implemented a new magnetic separation system, resulting in a 20% increase in the recovery of valuable aluminum alloys. This innovation not only improved the plant's efficiency but also reduced its environmental impact through emissions reduction strategies and water usage reduction.

How is this Aluminum Scrap Recycling Industry segmented?

The aluminum scrap recycling industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

End-user

  Casting
  Automotive
  Construction
  Packaging
  Aerospace
  Electronics
  Machinery/Equipment


Type

  Old scrap
  New scrap
  Aluminum Foil Scrap
  Aluminum Ingot Scrap


Alloy Type

  Wrought Alloy
  Casting Alloy
  Specific Alloy Series
  Unialloys


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    Italy
    UK


  Middle East and Africa

    UAE

Learn about the current factors that affect the price of aluminum scrap including demand, supply, market trends, quality, and recycling efforts. Find out how exchange rates and global events also influence pricing and understand the various types of aluminum scrap and their values.

Learn about the historical fluctuations in scrap aluminum prices and the factors that influence them. Discover how the COVID-19 pandemic and US-China trade war impacted prices and the expected future trends. Also, find out how recycling can benefit the environment and economy in aluminum production.

Get the latest insights on price movement and trend analysis of Steel Scrap in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East Africa).

Graph and download economic data for Producer Price Index by Commodity: Metals and Metal Products: Iron and Steel Scrap (WPU1012) from Jan 1947 to May 2025 about iron, steel, metals, commodities, PPI, inflation, price index, indexes, price, and USA.

Aluminum Scrap Market Outlook 2032

The global aluminum scrap market size was USD 7.60 Billion in 2023 and is likely to reach USD 28.12 Billion by 2032, expanding at a CAGR of 7.9 % during 2024–2032. The market growth is attributed to delivering innovative, lightweight, and recyclable aluminum solutions to its customers, particularly in high-demand sectors.



Increasing consumer awareness regarding sustainable practices is significantly boosting the market. The impetus majorly springs from the critical role of aluminum recycling in waste management and mitigating the environmental impact of primary aluminum production. Recycled aluminum, often derived from aluminum scrap, utilizes just 5% of the energy needed for primary production, enhancing operational efficiency and reducing carbon footprint.

Growing demand in various industries such as automotive, packaging, construction, and electronics is driving the aluminum scrap market. Car manufacturers, for example, Renault increased the use of recycled aluminum in their cars in 2022 to reduce carbon emissions and production costs.



Such industry trends underscore the mounting reliance on aluminum scrap and attest to its benefits over primary aluminum, including substantial energy savings and less environmental impact.

Impact of Artificial Intelligence (AI) on Aluminum Scrap Market

The use of artificial intelligence is likely to propel the aluminum scrap market.

South America Aluminium Scrap market size is USD 407.61 million in 2024 and will expand at a compound annual growth rate (CAGR) of 7.4% from 2024 to 2031.

The global sales of recycled scrap metal is estimated at USD 75.5 billion in 2025. Revenue is projected to rise steadily at a CAGR of 7.1% from 2025 to 2035, reaching USD 149.9 billion by the end of the forecast period.

Metric	Value
Industry Size (2025E)	USD 75.5 billion
Industry Value (2035F)	USD 149.9 billion
CAGR (2025 to 2035)	7.1%

Analyzing Recycled Scrap Metal Market by Top Investment Segments

Metal Type	Value Share (2035)
Ferrous Metals	72.5%

Metal Type	Value Share (2035)
Building & Construction	15.6%

Semi-annual Update

Particular	Value CAGR
H1	6.1% (2024 to 2034)
H2	7.5% (2024 to 2034)
H1	6.5% (2025 to 2035)
H2	7.7% (2025 to 2035)

Country-wise Insights

Countries	Value CAGR (2025 to 2035)
USA	6.5%
UK	7.9%
China	6.9%
Japan	7.3%
India	7.6%

Aluminum Scrap Recycling Market Outlook

The global aluminum scrap recycling market size was valued at approximately USD 95 billion in 2023 and is projected to reach USD 145 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 4.8% during the forecast period. This growth is driven by increasing environmental concerns, the need for energy-efficient manufacturing processes, and the rising demand for sustainable materials. Aluminum scrap recycling is gaining momentum as industries and governments worldwide focus on reducing carbon footprints and promoting circular economies. The recycling of aluminum scrap not only conserves natural resources but also requires considerably less energy compared to primary aluminum production, making it an attractive option for various industries.

One of the primary growth factors in the aluminum scrap recycling market is the increasing global emphasis on sustainability and environmental protection. As industries recognize the finite nature of natural resources, the importance of recycling has been amplified. Aluminum, known for its recyclability, is central to this shift toward sustainable practices. Recycling aluminum scrap requires up to 95% less energy than producing new aluminum from ore, significantly reducing greenhouse gas emissions. This energy efficiency not only contributes to environmental goals but also offers economic benefits, as businesses look to reduce operational costs and increase profitability through more sustainable practices.

Furthermore, government regulations and policies aimed at promoting environmental sustainability are also propelling the aluminum scrap recycling market. Numerous countries have implemented strict regulations regarding waste management and recycling, incentivizing industries to adopt recycling practices. These regulations often come with financial incentives in the form of tax breaks or subsidies for companies that actively engage in recycling. For instance, the European Union has set ambitious recycling targets as part of its Circular Economy Action Plan, encouraging member states to enhance their recycling infrastructure and capabilities. Such regulatory frameworks are pivotal in boosting the demand for aluminum scrap recycling services.

The growing demand for aluminum in various industries is another critical factor driving the market. Aluminum is extensively used in sectors such as automotive, construction, and electronics due to its lightweight, durability, and excellent thermal conductivity. As these industries continue to expand, the supply of recycled aluminum becomes increasingly vital to meet the rising demand. The automotive industry, in particular, is seeing a surge in demand for lightweight materials to improve fuel efficiency and reduce emissions. Recycled aluminum is a preferred choice due to its cost-effectiveness and environmental benefits, reinforcing the importance of the aluminum scrap recycling market.

Scrap Recycling plays a pivotal role in the aluminum industry by providing a sustainable solution to manage waste and conserve resources. The process involves collecting and processing scrap aluminum to create new products, significantly reducing the need for raw material extraction. This not only helps in minimizing environmental impact but also supports the economic viability of industries reliant on aluminum. As the demand for aluminum continues to rise, scrap recycling becomes increasingly important in maintaining a balance between supply and demand. The recycling process is also crucial in reducing landfill waste, promoting a circular economy where materials are continuously reused and repurposed.

Regionally, the Asia Pacific is expected to dominate the aluminum scrap recycling market, driven by rapid industrialization, urbanization, and stringent environmental regulations in countries like China and India. The region's burgeoning automotive and construction industries are significant consumers of recycled aluminum. Additionally, North America and Europe are also key markets, with established recycling infrastructures and strong regulatory support for sustainability initiatives. In contrast, Latin America and the Middle East & Africa are witnessing gradual growth as awareness and investments in recycling technologies increase.

Scrap Type Analysis

The aluminum scrap recycling market is segmented by scrap type into old scrap and new scrap. Old scrap refers to post-consumer materials such as used beverage cans, automotive parts

North America Aluminium Scrap Market size was valued at USD 15.0462 Billion in 2024 and is projected to reach USD 23.175 Billion by 2031, growing at a CAGR of 6.12% from 2024 to 2031.

North America Aluminium Scrap Market Drivers

Growing Demand for Recycled Aluminium: The increasing demand for sustainable and environmentally friendly materials is a major driver. Recycled aluminium uses significantly less energy than primary aluminium production, making it an attractive option for industries focused on reducing their carbon footprint.

Expansion of the Automotive Industry: The automotive industry's push towards lightweight materials for fuel efficiency, especially in electric vehicles (EVs), is driving demand for aluminium. Recycled aluminium is particularly favored due to its cost-effectiveness and similar properties to virgin aluminium, leading to increased demand for aluminium scrap.

Government Regulations and Initiatives: Stringent environmental regulations and government initiatives promoting recycling and sustainability are boosting the aluminium scrap market. Policies aimed at reducing waste and encouraging the circular economy are driving industries to increase their use of recycled materials, including aluminium.

The average price of aluminum has fluctuated in recent years, and since 2020 it has increased significantly. In 2024, the average price of the metal was 2,419 U.S. dollars per metric ton, compared to 1,704 U.S. dollars in 2020.

Iron and steel scrap prices in the United States stood at around *** U.S. dollars per metric ton in 2024, down from *** dollars per ton a year earlier. This is the fourth consecutive annual decrease recorded. Steel scrap consumption The majority of domestic steel industry scrap consumption is from manufacturers of raw steel, and steel castings. These raw materials are used to produce steel products that are used for appliances, construction, machinery, and transportation, among other industry uses. Only small amounts of steel scrap were used for the production of ferroalloys, copper precipitation, and the chemical industry. Recycling scrap Recycled iron and steel scrap materials have been essential for the production of new steel and cast iron products. Vehicles are one of the largest sources of old steel scrap used for recycling and nearly 100 percent of cars are recycled for their scrap material. It is expected that the recycling rate for scrap materials from appliances and construction purposes should rise, especially as public interest for recycling grows and profitability increases.

Aluminium Scrap Market size was valued at USD 28,850 Million in 2023 and is projected to reach USD 33,980 Million by 2031, growing at a CAGR of 2.4% during the forecast period 2024-2031.

Global Aluminium Scrap Market Drivers

The market for Aluminium Scrap is influenced by various drivers, which can significantly impact demand, supply, and pricing trends. Here are some key market drivers for the Aluminium Scrap Market:

Demand from End-Use Industries: The recycling industry is driven by demand from various sectors, including automotive, construction, packaging, and electronics. Increased production in these industries can lead to greater demand for aluminium scrap. Increasing Focus on Sustainability: There is a growing emphasis on sustainable manufacturing practices and circular economies. Many companies are looking to reduce their carbon footprints, which drives the demand for recycled materials, including aluminium scrap.

Global Aluminium Scrap Market Restraints

The aluminum scrap market, while experiencing growth due to increasing recycling efforts and demand for sustainable materials, faces several market restraints that can impact its development. Here are some key restraints:

Regulatory Challenges: Stringent environmental regulations and waste management laws can complicate the collection, processing, and recycling of aluminum scrap. Compliance with these regulations can increase operational costs for scrap processors. Quality Control Issues: The quality of aluminum scrap can vary significantly. Impurities or a mix of different aluminum alloys can reduce the value of the scrap and complicate the recycling process, leading to financial losses for recyclers.

The aluminum scrap market is projected to reach a value of 162.85 billion by 2033, expanding at a CAGR of 4.43% during the forecast period (2023-2033), according to a recent market analysis. This growth is primarily driven by rising aluminum demand in various end-use industries, such as automotive, aerospace, construction, and electrical and electronics. The increasing adoption of lightweight materials, particularly in the automotive sector to improve fuel efficiency, is fueling the demand for aluminum scrap. The market is segmented by grade (pure aluminum scrap, mixed aluminum scrap, extrusion scrap, and casting scrap), origin (new scrap and old scrap), source (manufacturing, construction and demolition, transportation, and consumer goods), and application. The automotive segment is expected to witness significant growth due to the rising demand for aluminum in lightweight vehicle manufacturing. The construction industry is also expected to drive the market, with aluminum scrap used in building facades, roofing, and window frames. Asia Pacific is anticipated to be a key market for aluminum scrap, with China and India being major consumers due to their large automotive and construction industries. Recent developments include: The Aluminium Scrap Market is projected to reach USD 163.05 billion by 2032, exhibiting a CAGR of 4.43% during the forecast period. Growth in the construction, automotive, and packaging industries is driving demand for aluminium scrap. Increasing environmental concerns and government regulations promoting recycling are also contributing to market growth.Recent developments in the market include:In 2023, Novelis Inc. announced plans to invest USD 250 million to expand its aluminium recycling and rolling operations in China.In 2024, Hydro Aluminium signed a contract with Redux to supply low-carbon aluminium to the automotive industry.Governments in Europe and North America are implementing stricter regulations on aluminium waste, mandating recycling and promoting the use of recycled aluminium in various industries.These developments indicate a growing focus on sustainability and the increasing importance of aluminium scrap in the global economy.. Key drivers for this market are: Rising automobile production increasing construction activities growing aerospace industry expanding packaging industry and stringent environmental regulations. Potential restraints include: Growing construction sector increasing automotive production rising demand for sustainable materials.

North America Aluminium Scrap market size is USD 3260.88 million in 2024 and will expand at a compound annual growth rate (CAGR) of 6.2% from 2024 to 2031.