EU secondary aluminium prices firm as scrap shortages bite

Tight scrap availability has been the primary driver supporting EU aluminium scrap and secondary ingot prices, with very low generation leaving domestic feed supply constrained across the region, trade sources told Fastmarkets on Friday January 23.Yards reported limited inflows as market participants position themselves ahead of expected Spring 2026 EU scrap export restrictions, underpinning both scrap and ingot values despite mixed downstream demand.

A relatively firm euro, currently around $1.17 after rebounding from January lows of $1.155, has added complexity to trade flows but has not undermined pricing because of the underlying shortage of feedstock.

“The European market is being supported by strong scrap prices instead of healthy demand,” one Italian ingot maker said. “The current situation for alloy producers is tough because current profit margins can hardly cover production costs. In the past week we saw more secondary scrap price increases, especially for floated frag due to its scarcity and only a timid attempt to increase ingot prices,” the ingot maker added.

“Our scrap suppliers are delaying delivery due to the shortage of material,” one Eastern European ingot producer said. “Let’s see what happens next week, but in our view the ingot market will be close to €2,600 per tonne by Friday.”

Aluminium pressure diecasting ingot DIN226/A380, delivered Europe traded slightly higher around €2,430-2,530 ($2,854-2,971) per tonne, up by €10, supported more by raw material scarcity than by any substantial increase in industrial consumption.

Fastmarkets assessed the price for aluminium scrap floated frag, delivered consumer Europe at €1,900-2,000 per tonne on Friday, up by 2.63% from €1,850-1,950 per tonne a week ago.

Stable logistics and container costs, alongside the rollout of the EU Carbon Border Adjustment Mechanism (CBAM), remain in focus, but near-term market sentiment is cautious. CBAM is expected to impose higher emissions-related costs on aluminium imports, raising landed costs and creating a domestic preference for EU-produced and remelted material.

Market participants expect a “wait-and-see” period in the coming weeks, with the stronger euro likely to slow scrap outflows to Asia ahead of the EU Spring export tax. Meanwhile, scrap import prices in East Asia have reportedly fallen by at least $50 per tonne in the past week because of rising domestic costs, reinforcing the view that EU ingot prices will stay buoyant on supply-side feed constraints instead of demand-led growth.

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