Amag Aluminium Loan Strengthens Europe’s Push for Advanced Aluminium Manufacturing

Amag Aluminium

Amag aluminium loan financing from the European Investment Bank will support new research, digitalisation, and sustainable manufacturing in Austria’s downstream aluminium sector. The €75mn loan gives Amag fresh capital to develop higher-value aluminium products while improving the environmental performance of its Upper Austria production base.

The financing marks the first EIB loan in Austria under the TechEU programme. That matters because the programme is designed to accelerate European innovation in strategic industries. For aluminium, this support comes as Europe seeks more resilient supply chains for materials used in transport, packaging, energy infrastructure, and net-zero technologies.

Amag plans to use the loan as part of a wider research investment programme expected to reach €168mn between 2025 and 2028. The Amag aluminium loan therefore supports more than one company’s balance sheet. It also reflects Europe’s effort to protect industrial capability in a sector exposed to energy costs, import competition, and decarbonisation pressure.

EIB Financing Supports Aluminium R&D and Digitalisation

The EIB financing will help Amag develop advanced aluminium products and modernise manufacturing processes. This is important because downstream aluminium producers increasingly compete on alloy performance, process efficiency, traceability, and carbon footprint rather than volume alone.

Digitalisation will likely play a central role in that competitiveness. Aluminium rolling, casting, recycling, and finishing operations depend on tight process control. Better data systems can improve yield, reduce waste, and support more consistent product quality for demanding customers in automotive, aerospace, industrial, and energy transition markets.

The Amag aluminium loan also highlights how public financing is becoming more closely tied to industrial technology. Europe is trying to support companies that can upgrade manufacturing while meeting stricter sustainability requirements. For aluminium producers, that means combining product innovation with lower-emission operations.

Critical Raw Materials Policy Raises Aluminium’s Strategic Role

The loan also aligns with the European Critical Raw Materials Act. Although aluminium is widely traded, Europe increasingly treats it as a strategic material because it underpins net-zero technologies, lightweight transport, power infrastructure, and manufacturing resilience.

This policy connection is significant for downstream producers. Europe does not only need raw metal supply. It also needs domestic capacity to convert aluminium into advanced products that meet industrial and environmental standards. Companies such as Amag sit in that critical middle layer between raw material supply and finished manufacturing.

The EIB’s support therefore strengthens Europe’s aluminium value chain at a time when industrial policy is becoming more active. As global competition intensifies, financing for research and sustainable production can help European producers defend higher-value market positions and reduce dependence on imported materials and technologies.

The Metalnomist Commentary

The Amag aluminium loan shows how Europe is using finance as an industrial policy tool. The bigger message is clear: aluminium competitiveness will depend on innovation, low-carbon production, and control over strategic manufacturing capacity.

EGA Aluminium Recycling Strategy Expands With Eco Green Acquisition

EGA Aluminium Recycling

EGA aluminium recycling strategy has advanced with Emirates Global Aluminium agreeing to acquire an 80% stake in Italian aluminium recycler Eco Green. The deal strengthens EGA’s recycled aluminium footprint in Europe and adds another foreign recycling platform to its growing international network.

Eco Green operates near Verona in northeast Italy. The company collects, sorts and distributes around 23,000 t/yr of aluminium scrap, while its nearby casting facility produces more than 20,000 t/yr of secondary aluminium sows.

EGA aluminium recycling capacity will expand further because Eco Green is planning an additional 15,000 t/yr of recycled aluminium capacity at its casting facility. This gives EGA both existing production and near-term growth potential in the European secondary aluminium market.

The acquisition shows that EGA is moving beyond its traditional UAE-based integrated aluminium model. Instead of relying only on primary metal expansion, the company is buying recycling assets closer to scrap sources and downstream customers.

Eco Green Adds European Scrap and Casting Capacity

Eco Green gives EGA direct access to Italian aluminium scrap collection, sorting and secondary casting capacity. This is strategically important because scrap access is becoming a core competitive advantage in aluminium.

Secondary aluminium requires far less energy than primary aluminium. It also helps customers reduce embedded carbon in automotive, packaging, construction and industrial products.

The Verona-area location gives Eco Green access to Europe’s mature industrial scrap flows. Italy is one of Europe’s major manufacturing centres, which supports steady availability of post-industrial aluminium scrap.

The casting facility also gives EGA a route to convert collected scrap into secondary aluminium sows. This strengthens value capture because the business is not limited to scrap trading or sorting.

The planned 15,000 t/yr expansion will deepen that position. It should allow Eco Green to process more scrap internally and support EGA’s broader recycled aluminium supply targets.

EGA Builds a Global Secondary Aluminium Platform

The Eco Green deal follows EGA’s acquisition of German recycling company Leichtmetalle in 2024. EGA later announced an expansion of that facility, which will increase capacity more than six-fold.

EGA also bought a majority stake in US secondary aluminium smelter Spectro Alloys in 2024. Since then, it has announced two expansions that will lift Spectro’s total capacity to more than 200,000 t/yr of secondary aluminium ingots and billets, from 110,000 t/yr previously.

Following the Eco Green acquisition, EGA aluminium recycling capacity will total more than 400,000 t/yr across the UAE, Europe and the US. A further 200,000 t/yr is under development.

This creates a more diversified aluminium business. EGA can still rely on its primary aluminium base in the UAE, but recycling gives it lower-carbon growth in key consuming regions.

The strategy also responds to customer demand. Buyers increasingly want aluminium with lower carbon intensity, traceable scrap inputs and regional supply security.

For EGA, recycled aluminium acquisitions offer faster market entry than building new primary smelting capacity. They also reduce exposure to energy-intensive growth and place the company closer to circular aluminium supply chains.

The Metalnomist Commentary

EGA’s Eco Green acquisition confirms that global aluminium competition is shifting toward scrap control and secondary capacity. The winners in low-carbon aluminium will not only own smelters; they will own regional recycling networks close to customers.

Germany Pushes EU to Impose Aluminium Scrap Export Tariffs

Aluminum Scrap

Rising US demand sparks supply concerns and threatens Europe’s circular economy framework

Aluminium Deutschland Warns of Scrap Outflow Risk

Germany's aluminium industry group, Aluminium Deutschland, has urged the EU to impose aluminium scrap export tariffs. This demand follows the United States’ decision to implement a 25% tariff on primary aluminium imports, while keeping aluminium scrap exempt from the tariff.

As a result, US buyers are likely to switch from importing primary aluminium to sourcing cheaper scrap — particularly from Europe. This shift could lead to a serious shortage of scrap for European recyclers, who rely on stable domestic supply for their operations.

US-EU Price Gap Accelerates Market Arbitrage

The arbitrage between US and EU aluminium prices has widened sharply in recent months. According to market data, the premium gap surged from $110/t in November to nearly $700/t in early May 2025. This creates a strong incentive for exporters to redirect scrap to the US market, further tightening EU supply.

Aluminium Deutschland emphasized that this trend could undermine Europe’s recycling industry. President Rob van Gils called for “swift and decisive action” to avoid dismantling years of progress in circular economy infrastructure.

Europe Faces Growing Scrap Scarcity

Europe's aluminium scrap supply is already strained. Sluggish industrial activity has lowered fresh scrap generation, while Asian demand remains strong, forcing EU recyclers to compete globally. If the EU does not act, companies could face escalating shortages, threatening decarbonisation goals and raw materials security.

The Metalnomist Commentary

Germany’s call for aluminium scrap export tariffs reflects a growing geopolitical competition over raw materials. As secondary aluminium becomes a substitute for tariffed primary metal, the EU risks losing strategic feedstock to global arbitrage. Scrap policy will increasingly define the success or failure of Europe’s industrial climate goals.

 

Metlen Aluminium Production Fell in 2025 as Power Costs Hit Metals Profits

Metlen

Metlen aluminium production declined in 2025 as higher European electricity costs squeezed margins across the Greek group’s metals business. The company produced 232,000t of aluminium during the year, down 2% from 2024.

Primary aluminium output fell by 4% to 176,000t, outweighing a 2% increase in recycled aluminium production to 57,000t. Alumina output also slipped by 1% to 855,000t.

Metlen aluminium production weakness shows how European smelters remain exposed to energy costs even when aluminium prices are firmer. Higher power prices reduced operating profits and weakened the earnings contribution from the metals segment.

Aluminium Revenue Rose but EBITDA Fell Sharply

Metlen’s metals revenue increased in 2025, but profitability fell because margins weakened. Aluminium revenue rose by 4% to €646mn, while EBITDA from aluminium dropped by 40% to €127mn.

Alumina showed a similar pattern. Revenue from alumina production increased by 4% to €206mn, but product-linked EBITDA fell by 9% to €79mn.

The result highlights the margin pressure facing European aluminium producers. Stronger aluminium prices, supported by trade tensions and US import tariffs, were not enough to offset higher electricity costs across the region.

Metlen’s metals unit contributed 13% of group revenue. However, weaker metals earnings weighed on the company’s broader industrial performance.

Gallium Project Adds Strategic Value Beyond Aluminium

Metlen’s group EBITDA fell by 30% to €753mn in 2025, despite a 25% increase in revenue to €7.1bn. The decline reflected project execution-related losses, mainly tied to the Protos strategic energy and resource project in the UK.

Revenue growth was supported by stronger performance in renewables, infrastructure, and concessions. This helped offset some weakness from metals, but did not prevent the group-wide earnings decline.

Metlen is also moving into critical materials. The company plans to produce up to 50 t/yr of gallium by 2028 after reaching full capacity, supported by a €90mn investment from the European Investment Bank.

This gallium project could give Metlen a more strategic role in Europe’s critical minerals supply chain. Gallium is important for semiconductors, power electronics, optics, defense systems, and advanced communications technologies.

The Metalnomist Commentary

Metlen’s results show that Europe’s aluminium industry still faces a structural energy-cost problem. The gallium project gives the company a higher-value strategic materials angle, but its aluminium margins will remain tied to power competitiveness.

Hydro Announces Major Investment in Low-Carbon Aluminium Wire Rod Facility

Hydro

New Casthouse at Karmoy to Support Europe’s Energy Transition with Sustainable Aluminium

Hydro to Launch 110,000 t/yr Aluminium Wire Rod Casthouse in Norway

Norwegian aluminium producer Hydro has unveiled plans to build a 110,000-ton-per-year aluminium wire rod casthouse at its smelter in Karmoy, Norway. This marks the company’s largest domestic investment in a decade, signaling its commitment to supplying the materials needed for Europe’s accelerating energy transition.

Set to begin production in Q1 2028, the new facility will manufacture low-carbon aluminium wire rod specifically designed for power cables. These cables are critical to the growing renewable energy infrastructure across the continent.

Hydro emphasized that aluminium's light weight, durability, and recyclability make it ideal for energy systems. Notably, aluminium conductors provide the same electrical conductivity as copper while weighing only half as much.

Surging Demand for Sustainable Aluminium in Energy Infrastructure

Hydro has observed rising demand for low-carbon aluminium in recent years, even as overall aluminium market activity remains subdued. The shift is driven by Europe’s push for sustainable energy transmission systems, which increasingly favor renewable materials.

“We see in our own sales figures an increasing awareness in the market that future renewable energy must be transported with renewable materials,” said Hydro CEO Eivind Kallevik. This trend aligns with broader decarbonization efforts within the European Union’s Green Deal framework.

Final Investment Decision Expected by Year-End

While the plan is progressing, Hydro stated that a final investment decision will be made in the fourth quarter of 2025. If approved, the Karmoy project will not only expand Hydro’s low-carbon product portfolio but also strengthen Norway’s role in Europe's clean energy material supply chain.

The Metalnomist Commentary 

Hydro’s strategic pivot toward low-carbon wire rod production is more than a manufacturing expansion—it's a signal to the broader metals industry. As governments and utilities demand greener grids, aluminium wire rod is quietly emerging as a frontline material for climate-resilient infrastructure. With weight and recyclability on its side, aluminium could challenge copper in critical grid applications. Hydro’s move reinforces how upstream aluminium strategies are now tightly linked to downstream energy policy.

European Aluminium Renews Call for Aluminium Scrap Export Restrictions

European Aluminium Scrap

US Tariff Hike Intensifies Scrap Supply Pressures in Europe

European Aluminium has renewed its push for export restrictions on aluminium scrap following US president Donald Trump’s decision to double tariffs on EU steel and aluminium imports to 50%. The association warns that the move could accelerate scrap outflows to the US, worsening an already tight supply situation in Europe.

The industry group first raised the proposal in 2018 when the US imposed a 25% tariff on all steel and aluminium imports. Scrap aluminium was excluded from the sanctions, making it an attractive alternative for US buyers seeking to avoid higher costs on primary aluminium. With the latest tariff hike, European Aluminium says the outflow has intensified, threatening domestic recycling and semi-fabrication operations.

Rising Global Demand for Aluminium Scrap Fuels Competition

Strong demand from buyers in India and other Asian markets has already strained European scrap supply. These buyers offer higher prices, benefiting from lower labour and energy costs and weaker environmental regulations. Additionally, primary aluminium producers in Europe are increasingly using higher-grade scrap to meet automotive customers’ sustainability goals.

European Aluminium reported that scrap exports to the US surged 273% year-on-year in the first quarter of 2025, already accounting for two-thirds of total exports in 2024. Without swift EU intervention, the association warns that the situation could escalate into a “full-blown scrap crisis,” jeopardizing the viability of Europe’s aluminium recycling and semi-fabrication industry.

The Metalnomist Commentary

The surge in US demand for European aluminium scrap highlights the vulnerability of supply chains to trade policy shifts. For the EU, balancing open trade with the need to safeguard strategic raw materials will be critical. Without targeted restrictions or incentives to retain scrap domestically, Europe risks undermining its own circular economy and low-carbon manufacturing goals.

Hydro European Extrusion Plant Closures Signal Deeper Pressure in Aluminium Demand

Hydro

Hydro European extrusion plant closures are expanding as the Norwegian aluminium producer adds the Luce plant in France to its restructuring plan. The move brings the number of European extrusion plants targeted for closure in 2026 to six, reflecting continued weakness in regional aluminium demand.

Hydro previously announced plans to close extrusion plants in Cheltenham and Bedwas in the UK, Ludenscheid in Germany, Feltre in Italy, and Drunen in the Netherlands. The two UK closures have been confirmed and are scheduled for the second quarter.

Hydro European extrusion plant closures show that aluminium processors are still adapting to weak construction, automotive, and industrial demand across Europe. The company also closed its Birtley extrusion plant in the UK in May, underlining the scale of its capacity adjustment.

European Aluminium Extrusion Market Remains Under Pressure

The European aluminium extrusion market continues to face difficult operating conditions. Weak demand, high costs, and margin pressure are forcing producers to reassess plant networks and remove capacity from less competitive sites.

Hydro said the European market remains challenging and that further action is needed. The planned Luce closure fits into a broader effort to align capacity with demand while maintaining service levels in key markets such as France.

If all planned closures are completed, Hydro will retain 27 extrusion plants and five recycling facilities in its European extrusion business. This suggests the company is not exiting Europe, but reshaping its footprint around fewer, more competitive assets.

Luce Closure Adds Cost but Supports Long-Term Restructuring

Hydro estimates total restructuring costs related to the Luce closure at Nkr260mn, or about $27.2mn. Around Nkr5mn will affect the company’s adjusted earnings in the first quarter.

The near-term cost is part of a wider restructuring logic. Aluminium extrusion producers need scale, utilization, efficient logistics, and competitive energy and labour cost structures to protect margins in a weak market.

Hydro European extrusion plant closures also highlight a broader issue for Europe’s downstream aluminium sector. Demand recovery remains uncertain, while producers must continue investing in recycling, low-carbon aluminium, and higher-value applications to remain competitive.

The Metalnomist Commentary

Hydro’s restructuring shows that Europe’s aluminium challenge is moving downstream, not staying limited to smelting. The winners will be producers that can combine leaner capacity, recycling integration, and higher-value customer segments before demand fully recovers.

Germany Aluminium Industry Decline Deepens as Energy Costs and CBAM Pressure Competitiveness

Germany Aluminium

Germany aluminium industry decline is becoming harder to reverse as production, recycling, and capacity utilization remain well below 2021 levels. Aluminium Deutschland said the sector showed no growth since 2021. Fourth-quarter output stayed only 76-88pc of 2021 levels. As a result, Germany aluminium industry decline now looks more structural than cyclical.

This matters because the sector is losing strength across several product categories at once. Rolled products rose slightly in 2025, but still remained 12pc below 2021 levels. Extruded products fell 1pc last year and stayed 24pc below 2021. Therefore, German aluminium competitiveness is weakening across both primary and semi-finished segments.

The association blames policy and cost pressure for the downturn. High energy prices, weak relief measures, and regulations such as CBAM are central concerns. The wider economy also remains soft. Consequently, Germany aluminium industry decline is being driven by both weak demand and a more difficult operating environment.

German Aluminium Competitiveness Is Under Pressure From Energy and Policy

German aluminium competitiveness is under direct pressure from high power costs and ineffective industrial support. Aluminium Deutschland said current policy frameworks no longer support recovery. It also warned that traditional policy thinking is failing domestic industry. As a result, the sector sees competitiveness risk as a core threat, not a temporary obstacle.

CBAM impact on aluminium is also becoming more controversial inside the industry. The association argues that CBAM may add burdens instead of meaningful protection. That concern is especially serious in a sector already facing cost disadvantages. Therefore, German aluminium competitiveness may weaken further if policy tools fail to deliver real relief.

This issue matters because aluminium is deeply tied to industrial employment and manufacturing resilience. If producers continue losing ground, Germany may become more dependent on imported metal and products. Meanwhile, the country could lose more industrial capacity in areas that support broader supply chains.

Aluminium Recycling in Germany Also Shows Industrial Weakness

Aluminium recycling in Germany is also moving in the wrong direction. German companies produced 2.7mn t of recycled aluminium in 2025. That was down 1pc on the year and 16pc below 2021 levels. As a result, the decline is not limited to primary production or semi-finished products.

Weak downstream demand is a major reason. Automotive, construction, and plant engineering all remained soft. Tight scrap availability and high scrap prices also hurt recycling economics. Therefore, aluminium recycling in Germany now reflects both industrial slowdown and raw material stress.

This matters because recycling should be one of Europe’s stronger advantages in aluminium. When recycling weakens alongside broader production, it signals a much deeper industrial problem. Consequently, Germany aluminium industry decline now extends across the full value chain rather than one isolated segment.

The Metalnomist Commentary

Germany’s aluminium sector is no longer describing a normal downturn. It is describing a competitiveness crisis. If energy costs, policy burdens, and weak demand continue together, Germany risks losing more than output. It risks losing strategic industrial capability.

Aluminium Dunkerque Acquisition Expands Alba’s Reach Into EU Aluminium Smelting

Aluminium Dunkerque

Aluminium Dunkerque acquisition plans will give Aluminium Bahrain a major foothold in European primary aluminium production. Alba has agreed to acquire the French smelter from US private equity firm American Industrial Partners, creating a more geographically diversified aluminium group.

Aluminium Dunkerque is the largest aluminium smelter in the EU, with capacity of around 300,000 t/yr. The facility gives Alba direct exposure to European customers, EU industrial policy, and the region’s growing demand for lower-carbon aluminium supply.

The Aluminium Dunkerque acquisition also reflects a broader reshaping of aluminium ownership in Europe. Smelters with stable power access, strong industrial customers, and low-carbon potential are becoming strategically valuable as Europe tries to preserve energy-intensive manufacturing.

Alba Targets Long-Term Industrial Strategy in France

Alba said the transaction would combine two aluminium producers with complementary regional footprints. The company plans to maintain an industrial strategy anchored in France, led locally, and focused on operational stability.

This is important because Aluminium Dunkerque has changed ownership several times in recent years. American Industrial Partners has owned the smelter since 2021, after foreclosing on shares linked to GFG Alliance’s financing default. The facility had previously been owned by GFG subsidiary Liberty France Industries.

Alba’s management emphasized continuity, employee support, and continued investment. That message is likely aimed at French stakeholders, including workers, customers, power suppliers, and policymakers concerned about the future of domestic industrial capacity.

Low-Carbon Aluminium Becomes a Strategic Asset

Aluminium Dunkerque acquisition plans could strengthen Alba’s position in low-carbon aluminium markets. European customers increasingly need aluminium with stronger emissions credentials for automotive, packaging, construction, electrical equipment, and energy transition applications.

Alba said it wants to expand low-carbon production capabilities at the French site. This aligns with France’s industrial and energy priorities, especially as Europe seeks to defend strategic manufacturing while reducing carbon emissions.

The possible involvement of Bpifrance also matters. Alba said it is willing to offer the French state-backed investment bank a shareholding position as part of the transaction. Such participation could help align the deal with national industrial policy and support long-term investment at the smelter.

The Metalnomist Commentary

The Alba deal shows that European smelting assets remain strategically attractive when they offer scale, customer access, and low-carbon potential. Aluminium Dunkerque is not just a capacity acquisition; it is a gateway into Europe’s industrial decarbonisation agenda.

EU to Launch Aluminium Safeguard Probe Amid Rising Import Pressure

EU Aluminium

New U.S. Tariffs and CBAM Adjustments Prompt EU to Rethink Aluminium Trade Policy

Brussels Acts to Shield European Aluminium Industry

The European Commission will launch a safeguard investigation on 19 March to assess the need for trade defense measures on aluminium imports. This move responds to fears that U.S. tariffs will redirect global aluminium flows into Europe.

Washington reintroduced 25% import tariffs on steel and aluminium on 12 March, prompting the EU to act. European producers risk losing U.S. market access while facing increased inflows of diverted metal. Unlike steel, aluminium is not yet protected by EU safeguard measures.

Since 2021, over half of Europe’s aluminium smelting capacity has been curtailed. Today, just 46% of EU aluminium demand is sourced domestically. The Commission warns that continued pressure from imports threatens the survival of remaining producers.

New 'Melt and Pour' Rule and CBAM Reform

In addition to safeguard measures, the Commission will implement a new “melt and pour” rule. This rule defines the origin of metal products based on where they were originally melted—not where they were later processed. It aims to block minimal transformations that allow products to bypass tariffs or dumping duties.

The carbon border adjustment mechanism (CBAM) will also undergo revisions. The proposed update would extend the carbon levy to more aluminium- and steel-intensive downstream products. This adjustment addresses concerns that carbon-intensive imports could undercut EU-made goods, which comply with stricter climate rules.

The EU also plans to address carbon leakage. It will design compensation mechanisms for CBAM-regulated goods exported from the EU, with new anti-circumvention rules due in Q4 2025, before CBAM fully activates in 2026.

Scrap Export Restrictions and Demand Boosts Ahead

To secure domestic raw materials, the EU plans to tighten scrap metal export controls. The Commission will explore reciprocal restrictions on countries that limit scrap exports to the EU and may impose new charges on outbound scrap.

By the end of 2026, the EU will propose new demand-side targets for steel and aluminium usage in critical sectors like construction. These measures aim to support domestic producers while aligning with climate and circular economy goals.

Hydro Aluminium Wire Rod Supply Deal with NKT Hits €1 Billion Milestone

Hydro

Norway’s Hydro has signed a landmark €1 billion aluminium wire rod supply deal with Danish power cable firm NKT. The agreement will provide NKT with 274,000 tonnes of low-carbon aluminium wire rod from 2026 to 2033, with options for additional volumes. This deal reinforces Hydro’s strategic role in the electrification of Europe’s energy infrastructure.

Supporting Europe’s Grid Expansion with Low-Carbon Aluminium

The Hydro aluminium wire rod supply deal supports NKT’s efforts to scale up production of medium and high-voltage power cables. These products are essential to meet rising demand for renewable energy transmission. Hydro will further strengthen its supply capability through a new 110,000 t/yr wire rod casthouse at its Karmoy facility in Norway.

Diversifying with Automotive Foundry Products and Sustainability Goals

Hydro also signed a letter of intent with Mexico-based Nemak to co-develop ultra-low carbon aluminium foundry alloys for the auto sector. The goal is to deliver aluminium with a CO₂ footprint under 3kg per kg—25% lower than Hydro’s current best offering. This aligns with Hydro’s long-term strategy to decarbonize across the entire aluminium value chain.

Strong Profits but Demand Concerns for 2025

Hydro reported a 76% year-on-year rise in Q1 core profit, driven by stronger aluminium and alumina prices and favorable currency shifts. However, the company lowered its 2025 EBITDA guidance for the Extrusions division due to demand uncertainty in Europe and North America, citing US tariff policy concerns.

The Metalnomist Commentary

The €1bn Hydro aluminium wire rod supply deal reflects growing momentum in Europe’s low-carbon infrastructure buildout. However, Hydro's cautious 2025 outlook highlights the tension between green investment trends and macroeconomic volatility.

Tight Supply: The Key Driver in Europe's Aluminium Market

European aluminium markets remain sluggish, showing little recovery from the typical summer slowdown. With demand in key sectors like automotive and construction failing to rebound, trading activity has yet to pick up, leaving traders and distributors with limited sales opportunities. Despite this, premiums held steady throughout September, driven primarily by the tight supply rather than demand fluctuations, a trend that has persisted since early 2023.

A key factor behind the limited supply has been a series of production cuts across Europe over the past two years. Additionally, Russian aluminium has been largely absent from the market due to both official sanctions from countries like the UK and the US, and self-sanctioning by consumers. This has compounded the strain on availability, as China has aggressively increased its imports from international suppliers, further squeezing European access to aluminium.

Although premiums initially edged back to a range of $320-340/t earlier in the summer, they have since remained stable, flatlining between $320-430/t throughout June, July, and August, even as demand declined. Many expected that autumn would bring an uptick in demand, particularly from the automotive sector, but no such recovery has occurred. Germany, Europe’s largest economy, has been particularly affected, with its industrial production showing significant declines, especially in the construction sector, which has struggled throughout the decade. The automotive sector, led by giants like Volkswagen, has also suffered, with discussions of factory closures further dimming the outlook.

One market analyst noted, "There has been no bounce-back from the end of the summer. Stockists and distributors still have empty inboxes, which is very unusual for this time of year." Demand in both the automotive and construction sectors remains weak, yet premiums have not moved, reflecting the continued tightness in supply. China’s increasing aluminium imports, spurred by its near-cap on domestic production and energy efficiency mandates, have further limited supply in Europe.

Moreover, tightness in the alumina market, the primary input for aluminium production, has added additional pressure. A significant production drop from key supplier Rio Tinto, alongside high freight costs and limited exports from regions like the Middle East and India, have all contributed to the constrained supply environment. With demand expected to remain muted well into 2025, the European aluminium market seems likely to stay tight, making any small uptick in demand a potential trigger for premium increases.

Switzerland Adopts EU’s Russian Aluminium Ban in Sanctions Alignment

Russian aluminium

Federal Council Moves to Restrict Russian and Belarusian Aluminium Imports

Switzerland has adopted the EU’s Russian aluminium ban, aligning with Brussels’ 16th sanctions package targeting Moscow’s industrial exports. The Focus Keyphrase "Switzerland Russian aluminium ban" marks a significant shift in Swiss trade policy, historically characterized by neutrality, as the country intensifies its stance against Russian aggression.

The Federal Council announced it will implement all remaining relevant EU sanctions, including a ban on Russian primary aluminium imports and a prohibition on chromium ore exports to Russia. These measures aim to reduce materials that contribute to Russia’s military and technological advancement. Switzerland imported approximately 173,000 tonnes of unwrought Russian aluminium in 2023, according to Global Trade Tracker.

Belarusian Aluminium Also Targeted as Sanctions Widen

In parallel, Switzerland will enforce additional sanctions on Belarus, citing its complicity in the Ukraine war. These include a ban on Belarusian primary aluminium imports and expanded restrictions on dual-use and military-enhancing goods.

The Council emphasized that aligning sanctions with the EU is intended to prevent circumvention via Belarus, ensuring a more unified and effective European sanctions regime. This harmonization reduces the risk of Russian commodities entering EU markets indirectly through Swiss or Belarusian channels.

Strategic Impact on European Aluminium Supply Chains

The Swiss ban on Russian aluminium imports adds further pressure on Europe’s primary aluminium supply, which is already constrained by energy costs and limited regional production. Traders and manufacturers must now reassess sourcing strategies, particularly for unwrought aluminium, as the region seeks alternatives from non-sanctioned producers such as Norway, Canada, and the Middle East.

Meanwhile, the ban on chromium ore exports to Russia may impact specialty alloy production and stainless steel supply chains, especially those tied to aerospace and defense markets.

The Metalnomist Commentary

Switzerland’s adoption of the Russian aluminium ban underscores a growing consensus in Europe on restricting key industrial imports tied to Moscow. As sanctions converge and enforcement tightens, metals traders and manufacturers will need to recalibrate logistics and risk strategies in a rapidly evolving geopolitical landscape.

German Aluminium Output Rises Slightly, but Industry Urges Policy Support

German Aluminium Industry

Weak Demand and High Energy Prices Threaten Recovery

German aluminium output rises slightly in Q1 2025, marking the first production uptick after nearly three years of decline. According to industry association Aluminium Deutschland, recycled aluminium production increased 3% year-on-year to 703,000 tonnes, while semi-finished products edged up 1% to 576,000 tonnes. However, this growth appears fragile, with no underlying increase in demand and restocking cited as the main driver.

Rolled aluminium product output rose 2% to 456,000 tonnes, while extruded products fell 2% to 121,000 tonnes. This divergence indicates ongoing weakness in value-added segments. In 2024, Germany's aluminium sector had posted a 2% drop in recycled aluminium and a 3% decline in semi-finished products, underscoring the prolonged pressure on producers. Therefore, although German aluminium output rises slightly, the sector remains far from full recovery.

Aluminium Deutschland president Rob van Gils warned that the rebound is not demand-driven and emphasized the need for lower energy prices and clear investment frameworks. The call comes as Germany transitions to a new coalition government following political instability earlier this year. Without structural policy support, Germany risks entering 2025 as a stagnant industrial economy. The aluminium sector is demanding urgent reforms to avoid becoming Europe’s next manufacturing casualty.

The Metalnomist Commentary

Germany’s modest aluminium output growth reflects restocking activity, not industrial recovery. Without energy price reform and investor confidence, the nation’s aluminium sector could slide further—despite its technological strength and recycling capacity.

Aluminium Deutschland warning: German aluminium industry faces job cuts and relocation risk

Aluminium Deutschland

The Aluminium Deutschland warning signals deep stress across Germany’s aluminium value chain. More than 25% of companies plan or made job cuts, the group said. Another 13% consider moving production abroad. High power prices, weak demand, and CBAM costs drive the pressure.

Production has fallen to 76.5–87% of 2021 levels. Extruded and rolled products show the sharpest declines. Meanwhile, plants face weak orders in automotive and machinery. Therefore, investment decisions keep shifting toward lower-cost regions.

Output shrinks as extruded and rolled products lag 2021

Semi-finished output stayed broadly stable year on year in the third quarter. The sector produced about 593,000 tonnes in Q3. January–September production reached about 1.8 million tonnes. However, volumes still trail 2021 levels.

Rolled-product output rose 2% year on year to 1.4 million tonnes in January–September. That output still sits 13% below the same 2021 period. Extruded output fell 1% year on year to 362,000 tonnes. That figure remains 23.5% below the same 2021 period.

CBAM and policy gaps raise costs for imports and producers

CBAM will lift costs across the European Union market. Europe imports about 70% of its aluminium, so costs can spread fast. CBAM could add €30–446 per tonne to imported aluminium, depending on carbon intensity. As a result, buyers will reassess sourcing strategies and premium structures.

Weak growth expectations keep the outlook fragile. Companies do not expect a near-term turnaround, the association said. Rob van Gils warned that capacity cuts and job losses remain likely. Therefore, the Aluminium Deutschland warning points to a competitiveness test for Europe’s core metals base.

The Metalnomist Commentary

Germany can protect German aluminium jobs by lowering industrial power costs and speeding permits. Meanwhile, producers should expand recycling and verified low-carbon billet to defend margins. Therefore, Europe needs grid investment and predictable CBAM guidance to retain capacity.

European Aluminium Renews Call for Aluminium Scrap Export Restrictions

European Aluminium Scrap

Push for Export Fees to Protect Recycling Industry

European Aluminium has issued its third call this year for restrictions on aluminium scrap exports from the EU. The industry body urged policymakers to impose export fees, arguing that such measures would help secure more scrap for European recycling facilities. According to the association, stronger controls could stimulate investment, boost remelting capacity, and close the loop within Europe under strict environmental and social standards.

Impact of Scrap Shortages on EU Producers

The push comes as secondary aluminium alloy producers struggle with squeezed profit margins, driven by high scrap costs and rising European energy and labor expenses. Scrap availability has tightened as generation slowed in automotive, construction, and manufacturing sectors, while exporters in India and Asia raised purchase prices. European Aluminium reported that around 15pc of recycling furnace capacity is currently idled due to insufficient scrap supply, warning that unchecked exports risk undermining the bloc’s sustainability goals.

The Metalnomist Commentary

The repeated call from European Aluminium highlights the tension between global scrap demand and Europe’s recycling ambitions. Export restrictions could secure domestic feedstock, but they may also trigger retaliatory measures and complicate global trade. The EU must balance industrial resilience with open-market principles if it aims to lead in the circular economy transition.

European Aluminium Industry Pushes for Scrap Export Restrictions

Al scrap

Rising Pressure for Scrap Export Controls

The European aluminium scrap market is facing mounting pressure as supply tightness collides with strong export demand. Industry groups such as European Aluminium and Aluminium Deutschland have intensified lobbying for export tariffs to secure domestic scrap supply. Their push comes as the US raises tariffs on primary aluminium imports, potentially boosting American demand for European scrap.

Exports of European aluminium scrap surged in recent years, particularly to Asia. The EU and UK together shipped 1.57mn tonnes in 2024, a 23pc increase compared with 2022. India and China accounted for the bulk of these flows, while exports to the US, though smaller, grew sharply. European Aluminium warned that rising US interest, combined with current supply shortages, risks creating a “full-blown scrap crisis.”

Industry Debate and Market Risks

However, not all stakeholders agree that restrictions are the solution. Scrap merchants argue that supply shortfalls are driven more by weak industrial activity than by exports. Low production in automotive, construction, and machinery has reduced available grades like aluminium turnings, which are essential for European secondary smelters. They caution that tariffs may not address these structural issues and could trigger reciprocal trade barriers, complicating Europe’s own scrap imports.

At the same time, many producers identify high energy costs as the bigger threat to smelter viability. Merchants note that no smelter closures have been directly tied to scrap shortages, while escalating electricity prices have forced cutbacks. Despite this, calls for restrictions continue to gain traction, reflecting a broader trend of resource nationalism as countries prioritize domestic recycling over exports.

The Metalnomist Commentary

The debate over aluminium scrap export restrictions underscores a critical tension between free trade and industrial security. While tariffs may stabilize domestic availability, they risk distorting markets and inviting retaliation. The EU must weigh these risks carefully, especially as global competition for low-carbon feedstock intensifies. Energy costs, more than scrap scarcity, remain the sector’s existential challenge.

Global Aluminium Output March Growth Slows Despite Annual Gains

International Aluminum

Global aluminium output in March rose year-on-year but slowed slightly compared to February’s pace, signaling potential volatility ahead. The global aluminium output March data from the International Aluminium Institute reveals shifting regional dynamics as China leads production while other regions show mixed trends.

China Drives Annual Output Growth but Faces Trade Headwinds

Global aluminium production totaled 6.23 million tonnes in March, up 2.27% from the same month last year. However, average daily production declined to 200,900 tonnes, down from February’s revised 202,100 tonnes. China was the largest contributor, producing 3.73 million tonnes—up 3.41% year-on-year. Only October and December 2023 saw higher output.

Domestic demand and healthy profit margins drove China's production growth. However, escalating trade tensions with the U.S. may undermine this momentum. The aluminium industry is now watching closely for signs of further instability in Chinese industrial output.

Mixed Regional Trends Highlight Uneven Global Recovery

Outside China, production showed mixed results. Europe’s output increased 2.77% to 594,000 tonnes, while Asia (excluding China) rose 1.22% to 415,000 tonnes. Africa and South America posted stronger growth at 7.81% and 3.15% respectively.

In contrast, output declined in North America (down 0.88%), Oceania (down 1.86%), and the Middle East (down 2.61%). These declines may reflect energy costs, regulatory changes, or weakening demand in key export markets.

Price Volatility Reflects Market Uncertainty

London Metal Exchange (LME) aluminium prices averaged $2,650/t in March, a notable increase from $2,270/t a year earlier. However, prices retreated in April to an average of $2,407/t amid global equity market declines triggered by worsening U.S.–China trade tensions. This volatility is raising concern across supply chains and influencing production strategies globally.

The Metalnomist Commentary

The March rise in global aluminium output masks underlying signals of softness in monthly momentum. With geopolitical tensions and pricing instability increasing, producers may adopt a more cautious stance in the months ahead.

European Aluminium Calls for Unified CO2 Calculation Standards

European Aluminium

Industry Push for Harmonised Emissions Methodology

European Aluminium has urged the EU to establish a universal methodology for calculating carbon emissions across aluminium value chains. The industry body warned that fragmented national approaches create compliance burdens and hinder the EU’s decarbonisation targets. Member states are currently using varied methods that include renewable energy credits, recycled inputs, and innovative processes, but lack of alignment reduces comparability and efficiency.

The association addressed its concerns directly to European Commission leaders, stressing that inconsistent emissions reporting undermines transparency. It highlighted the need for alignment to support the EU’s broader climate strategy, particularly as aluminium plays a critical role in low-carbon industries such as automotive, construction, and packaging.

Regulatory Landscape and Policy Recommendations

European Aluminium pointed to ongoing regulatory frameworks such as the Corporate Sustainability Reporting Directive (CSRD) and Life Cycle Assessment (LCA) standards for EV batteries. These regulations demonstrate momentum toward emissions accountability but also expose gaps caused by inconsistent calculation methods.

The group expressed support for the European Commission’s Clean Industrial Deal (CID), which aims to streamline reporting across EU institutions. However, it warned that achieving a single emissions calculation framework might require adjusting legislative deadlines to allow industry and regulators sufficient time for harmonisation.

The Metalnomist Commentary

A harmonised carbon calculation system would significantly reduce compliance costs for aluminium producers and ensure fair competition across the EU market. Without it, fragmented rules risk weakening Europe’s industrial base at a time when decarbonisation and strategic autonomy are top priorities. The call from European Aluminium underscores the urgency for the EU to deliver clarity and consistency.

Hydro Reports Strong 3Q Earnings Boosted by Aluminium Price Gains

Hydro

Norwegian aluminium producer Hydro recorded a sharp increase in third-quarter earnings, driven by robust performance in its upstream operations and aluminium metal division. Higher aluminium and alumina prices offset weak demand in downstream markets, contributing to strong results for the company.

Financial Highlights

• Ebitda: Reached NKr 7.37 billion ($672 million), up 89% year-on-year and 26% quarter-on-quarter.
• Revenues: Increased by 12% year-on-year to NKr 50.09 billion.
• Year-to-Date Results: January-September Ebitda rose slightly to NKr 18.62 billion, while revenues climbed 1.17% to NKr 148.58 billion.

Upstream Strength Drives Growth

Hydro’s upstream operations outperformed significantly:

• Bauxite and Alumina Division: Ebitda surged to NKr 3.41 billion from NKr 93 million in the same quarter last year. This improvement was fueled by tightening global alumina supplies caused by disruptions in Australia and bauxite constraints in China.
• Aluminium Metal Division: Ebitda more than doubled to NKr 3.23 billion from NKr 1.38 billion a year earlier, supported by higher aluminium prices, lower carbon costs, favorable CO2 compensation, and positive currency effects.

Downstream Challenges

Hydro’s downstream businesses faced pressure due to weak market conditions:

• Extrusions Division: Ebitda dropped 33% to NKr 879 million as demand from the automotive extrusion sector remained sluggish, particularly in Europe. Low sales of electric vehicles in Germany compounded the downturn.
• Metal Markets Division: Ebitda fell 51% year-on-year to NKr 277 million, with squeezed recycling margins and reduced remelt production from limited aluminium scrap availability.

Hydro noted that building, construction, and industrial demand remained moderate but could see a recovery in 2025 if interest rates decline.

Outlook

Hydro's strong performance in upstream operations highlights its resilience amidst market volatility. However, downstream challenges reflect broader demand issues, particularly in Europe’s automotive and construction sectors. Continued alumina price strength and strategic cost management could help Hydro maintain its competitive edge in the aluminium market.