 |
| EU secondary aluminium prices |
Scrap Shortages Support EU Aluminium Prices
The EU secondary aluminium market in 2026 faces tight scrap availability. Limited domestic feedstock generation constrains production. Consequently, scrap and secondary ingot prices remain firm despite mixed downstream demand. Market participants are positioning ahead of expected Spring 2026 EU scrap export restrictions. Meanwhile, a relatively strong euro adds complexity to trade flows but does not reduce price support from underlying shortages. Therefore, alloy producers struggle as profit margins barely cover production costs, especially for floated frag, which remains scarce.
Secondary Ingot Prices Respond to Raw Material Constraints
Aluminium pressure diecasting ingots, including DIN226/A380, traded slightly higher at €2,430-2,530 per tonne. Price increases reflect material scarcity rather than industrial demand growth. Scrap floated frag prices rose to €1,900-2,000 per tonne, up 2.63% week-on-week. Supply chain stability and logistics costs remain manageable, yet market sentiment stays cautious. As a result, EU producers benefit from domestic preference amid the EU Carbon Border Adjustment Mechanism (CBAM), which will increase costs for imported aluminium.
Regional Trade and Export Considerations
The stronger euro is expected to slow scrap outflows to Asia ahead of the Spring 2026 export tax. In East Asia, scrap import prices fell by at least $50 per tonne due to rising domestic costs. Therefore, EU ingot prices will likely remain supported by supply constraints rather than demand-driven growth. Overall, EU secondary aluminium markets face a supply-driven pricing environment, with strategic positioning critical for producers and traders in 2026.
ScrapInsight Commentary
Supply-side constraints, particularly limited floated frag, will sustain EU secondary aluminium prices through 2026. CBAM enforcement enhances domestic production incentives, creating structural advantages for EU-based remelters. Traders should monitor scrap generation trends and export restrictions, as these will define near-term pricing and market liquidity.
