Aluminum Scrap Market Size, Share, and Industry Analysis By Scrap Type (Cast Aluminum, Aluminum Cans, Sheet Aluminum, and Others), By Application (Building & Construction, Automotive, Electronics, Machinery & Equipment, Packaging, and Others), and Regional Forecast, 2024-2032

The sheet aluminum segment primarily drives the aluminum scrap market. Aluminum sheets are highly versatile and widely used in various industries, which makes them a significant commodity in the aluminum scrap market. The sheets are extensively used in the construction industry for roofing, siding, facades, and structural components. In the automotive and aerospace industries, aluminum sheets are utilized for body panels, interiors, and structural components due to their lightweight and corrosion-resistance properties.

The automotive sector also drives the aluminum scrap market. The automotive segment is a significant contributor to the aluminum scrap market due to the widespread use of aluminum in various components of vehicles. It is increasingly used to construct body panels and frames due to its lightweight properties and corrosion resistance. Scrap aluminum from these components can be recycled to produce new panels and frames, reducing the demand for primary aluminum production.

• In 2023, India restricted the sale of poor-quality aluminum. This has been done through Quality Control (QC) orders issued by the Ministry of Mines.

Various consumer goods, including furniture, appliances, and utensils, utilize aluminum sheets for their durability and aesthetic appeal. These items are recycled into the scrap market when they become obsolete or damaged. In addition, they are utilized in industrial machinery, equipment, and components due to their strength-to-weight ratio and resistance to corrosion.  

By region, the major aluminum scrap market consumers are China, Japan, and India in Asia Pacific; the U.S. and Canada in North America; Germany and France in Europe; and Saudi Arabia and the UAE in the Middle East & Africa.

• In 2022, the Asia Pacific region dominated the aluminum scrap market with approximately 56% of the market share.
• By value, total electronics production in China was USD 520 billion in the year 2022.
• In 2022, South Korea manufactured approximately USD 340 billion worth of electronic equipment.

Segmentation

Key Insights

The report covers the following key insights:

• Key Emerging Trends – For Major Regions
• Key Developments: Mergers, Acquisition, Partnership, and Others.
• Latest Technological Advancements
• Insights on Sustainability
• Porters Five Forces Analysis
• Impact of COVID-19 on the Market

Analysis by Scrap Type

By scrap type, the cast aluminum segment holds a significant share of the global aluminum scrap market.

• Cast aluminum is widely used in various industries due to its versatility, lightweight nature, corrosion resistance, and excellent thermal conductivity. Cast aluminum components are extensively used in the automotive sector to manufacture engine blocks, wheels, and other structural parts.
• Cast aluminum alloys are utilized in the aerospace industry to manufacture aircraft parts such as engine components, structural frames, and interior fittings. Scrap aluminum from retired aircraft can be recycled to produce new parts or components, boosting the scrap aluminum market growth.

Analysis by Application

By application, the building & construction segment holds a considerable share of the global aluminum scrap market.

• Using aluminum scrap in building and construction offers numerous advantages, ranging from cost-effectiveness to sustainability. Aluminum scrap can be melted down and cast into various structural components such as beams, columns, and trusses.
• Furthermore, it is used to manufacture panels for exterior cladding systems. These panels provide weather resistance, durability, and aesthetic appeal to buildings. Additionally, aluminum panels are lightweight, which reduces the structural load on the buildings.

Regional Analysis

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The Asia Pacific region holds a considerable share of the aluminum scrap market. Rapid industrialization and urbanization across Asia, especially in countries such as China, India, and Southeast Asia, have created a consistent demand for aluminum scrap. Industries such as construction, automotive, and electronics are major consumers of aluminum scrap in this region, boosting the product demand in these applications.

Total Vehicle Production, By Region, 2022

• Asia Pacific – 42%
• Europe - 26%
• North America - 21%
• Middle East & Africa - 7%
• Others - 4%

Key Players Covered

The report includes the profiles of key players such as Alcoa, CASS, Chiho Renewable Development, Commercial Metals, Constellium, Crestwood Metal, European Metal Recycling, Hindalco Industries, Koch Enterprises, and Kuusakoski.

Key Industry Developments

• In April 2022, Alco collaborated with MMG Aluminium, a Germany-based metals trading company that supplies Mosjøen with clean aluminum chips and shavings that have been compressed into briquettes. The induction furnace efficiently melts those briquettes and pours out the recycled aluminum to blend with the smelter's low-carbon aluminum and various alloying materials.
• In November 2021, Alcoa announced plans to develop a process that can convert low-quality aluminum scrap to quality levels far exceeding the purity levels at commercial smelters, potentially tapping vast supplies of unused aluminum scrap.