Key Moments
- Severe tightness in aluminum scrap supply has kept EU scrap and secondary ingot prices firm, despite weak end-user demand.
- Aluminum pressure diecasting ingot DIN226/A380, delivered Europe, traded near €2,430–2,530 ($2,854–2,971) per tonne, up €10.
- Fastmarkets assessed aluminum scrap floated frag, delivered consumer Europe, at €1,900–2,000 per tonne, rising 2.63% week-on-week.
Scrap Shortages Dominate EU Secondary Aluminum Market
Tight aluminum scrap supply is the main driver of prices for scrap and secondary ingot across the EU. Trade participants told Fastmarkets on Friday, Jan. 23 that very low scrap generation has limited domestic feedstock.
As a result, scrap remains scarce even though demand has been mixed. Moreover, scrap yards report fewer incoming volumes because buyers are positioning ahead of expected EU scrap export rules in Spring 2026.
Currency Dynamics and Margin Pressures
A stronger euro, near $1.17 after rebounding from January lows, has also affected trade flows. However, the currency move has not offset the price support from the scrap shortage.
“Strong scrap prices are supporting the market, not healthy demand,” said one Italian ingot maker. He added that alloy producers face tight margins and rising costs. He also noted that scrap prices rose faster than ingot prices last week.
Producers Expect Further Ingot Price Strength
Producers say scrap deliveries are delayed because suppliers lack material. “Our scrap suppliers are delaying delivery due to the shortage,” said an Eastern European ingot producer.
He added that the ingot market could reach €2,600 per tonne by Friday if shortages persist.
Current Price Levels for Ingot and Scrap
Aluminum pressure diecasting ingot DIN226/A380, delivered Europe, traded around €2,430–2,530 per tonne. This was a €10 rise driven mainly by tight scrap supply rather than stronger demand.
Fastmarkets assessed aluminum scrap floated frag, delivered consumer Europe, at €1,900–2,000 per tonne on Friday. This was up 2.63% from €1,850–1,950 a week earlier.
| Material | Location/Term | Price Range | Previous Range | Change |
|---|---|---|---|---|
| Aluminum pressure diecasting ingot DIN226/A380 | Delivered Europe | €2,430–2,530 ($2,854–2,971) per tonne | Not stated | €10 rise |
| Aluminum scrap floated frag | Delivered consumer Europe | €1,900–2,000 per tonne | €1,850–1,950 per tonne | +2.63% |
Policy, Logistics, and Regional Flows
Participants are also watching logistics and the EU Carbon Border Adjustment Mechanism (CBAM). While shipping and container costs remain stable, CBAM could raise the landed cost of imports. Therefore, it may encourage more use of EU-produced and remelted material.
Near-term sentiment is cautious. Many expect a “wait-and-see” period in the coming weeks. Meanwhile, a stronger euro could slow scrap outflows to Asia ahead of the expected export tax.
East Asian Price Signals and Outlook
At the same time, scrap import prices in East Asia have fallen by about $50 per tonne over the past week. This is due to rising domestic costs. As a result, EU participants expect secondary ingot prices to stay supported mainly by limited feedstock rather than stronger demand.
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