Hongda hard aluminium alloy project marks shift to high-end industrial aluminium

Aluminium

The Hongda hard aluminium alloy project marks a strategic upgrade in the company’s product portfolio and technology base. Hongda has started trial production at the first phase of its high-strength hard aluminium alloy line in Gansu province. As a result, the Hongda hard aluminium alloy project positions the firm to supply lightweight aluminium products for automotive and aerospace customers.

The Hongda hard aluminium alloy project reflects a focused move into higher value downstream segments. The new facility will mainly produce lightweight aluminium components tailored to mobility and aerospace performance requirements. Investment totals 130mn yuan ($18mn), with expected annual sales of around 150mn yuan once fully ramped. Therefore, Hongda aims to lift revenue quality rather than chase pure volume growth in crowded commodity segments.

Hongda hard aluminium alloy project upgrades processes and product mix

The Hongda hard aluminium alloy project also transforms the company’s manufacturing processes. Hongda is upgrading from simple extrusion forming toward die-casting and precision processing routes. This shift supports tighter tolerances, more complex geometries and better surface quality for demanding industrial customers.

Historically, Hongda’s portfolio has focused on architectural aluminium products. These include aluminium alloy doors and windows, frames and plates for construction applications. However, the new hard aluminium alloy line expands into high-end industrial aluminium deep-fabricated products. As a result, market participants expect the project to widen margins by moving Hongda further up the value chain.

Process upgrades within the Hongda hard aluminium alloy project should also improve consistency and productivity. Precision processing strengthens Hongda’s ability to meet automotive and aerospace qualification standards. Meanwhile, die-casting can reduce material waste and enable lighter, integrated component designs. Together, these changes make the company less reliant on cyclical building and construction demand.

Domestic market pressure accelerates Hongda’s industrial pivot

Policy changes in China’s export regime provide important context for the Hongda hard aluminium alloy project. Beijing cancelled a 13pc export tax rebate on aluminium fabricated products in December 2024. This removal squeezed export profit margins and pushed more producers to redirect volumes into the domestic market. Therefore, competition in standard aluminium fabrication segments has intensified sharply.

Under these conditions, the Hongda hard aluminium alloy project is a defensive and offensive move. By focusing on high-strength hard aluminium alloys for autos and aerospace, Hongda targets segments with higher technical barriers. Meanwhile, deep fabrication capabilities support stronger brand loyalty and longer contracts, rather than purely price-based competition. However, success will depend on how quickly the company secures qualified programs with Tier-1 and OEM customers.

In the longer term, China’s push for lighter vehicles and more efficient aircraft will support specialised alloy demand. Companies able to offer integrated design, casting and machining solutions should capture a disproportionate share of this growth. Hongda’s new plant positions it to participate in that trend, while differentiating from lower-end architectural competitors.

The Metalnomist Commentary

Hongda’s move into high-strength hard aluminium alloys shows how Chinese fabricators are climbing the value chain under domestic margin pressure. If the company can translate process upgrades into stable aerospace and automotive orders, it will validate this higher-end strategy. Market participants should watch utilisation rates and customer wins at the Gansu facility as early indicators of project success.

Metalysis aluminium-scandium alloy powder enters commercial production in the UK

Metalysis

Metalysis aluminium-scandium alloy powder has reached commercial production in the UK. The move expands non-Chinese supply for a niche but strategic alloy. Meanwhile, Metalysis aluminium-scandium alloy powder targets faster deliveries for chip, defence, and aerospace customers.

Metalysis runs four Gen 2 units after doubling its operating base. Each unit produces up to 350kg per year of aluminium-scandium alloy powder. Therefore, the company positions itself for a meaningful share of a small market.

Gen 3 scale-up targets tonne output in a tight AlSc market

Metalysis plans tonne-scale output from Gen 3 units in the coming months. Nitesh Shah says the ramp will follow Gen 2 stabilisation and learning. As a result, aluminium-scandium alloy powder production could move from kilograms to tonnes faster.

Analysts estimate the aluminium-scandium market at only 3–4 tonnes per year. That tight ceiling makes reliability more valuable than headline capacity. However, even small expansions can reshape availability for high-purity powder buyers.

Export controls and semiconductor demand raise the value of Western supply

China’s export controls have pushed buyers to diversify the scandium supply chain. Metalysis aluminium-scandium alloy powder directly addresses that sourcing risk for midstream users. Meanwhile, customers increasingly prioritise traceable inputs for sensitive applications.

Chipmakers use aluminium-scandium sputtering targets in thin-film vapour deposition. They deposit aluminium-scandium nitride coatings for advanced semiconductor components. Therefore, stable AlSc alloy powder supply supports both yield control and procurement planning.

Defence and aerospace customers also dilute the powder with aluminium to make lightweight, high-strength alloys. That pathway links scandium availability to platform modernisation and airframe efficiency. However, the market will still demand strict quality control and consistent particle specifications.

The Metalnomist Commentary

Metalysis has entered a strategically important bottleneck, not a bulk metals market. Export controls will keep rewarding qualified non-Chinese suppliers with proven delivery. The next signal will come from Gen 3 qualification with semiconductor-grade customers.

Alcoa Norway Aluminium Smelter Expansion Adds Low-Carbon Recycling Capacity

ALCOA

Alcoa Norway aluminium smelter expansion will increase output at the company’s Mosjøen facility while adding new recycling and alloy-casting capabilities. The US aluminium producer plans to invest $65mn to upgrade the Norwegian smelter’s cast house.

Alcoa Norway aluminium smelter expansion is expected to add up to 75,000t of capacity to Mosjøen’s existing 200,000 t/yr production base. The project will be completed in phases, with commissioning and ramp-up scheduled through 2028.

Alcoa Norway aluminium smelter expansion is strategically important because European customers are seeking lower-carbon aluminium with stronger recycled-content credentials. Automotive and packaging buyers are increasingly asking suppliers to meet tighter sustainability and traceability requirements.

The project will allow Alcoa to use post-consumer recycled aluminium at Mosjøen for the first time. That marks a shift from conventional primary output toward a more flexible primary-and-recycled production platform.

Cast House Upgrade Broadens Alloy and Ingot Capability

Alcoa will upgrade Mosjøen’s cast house as the core of the expansion. Planned improvements include a new open-mold foundry casting line and additional melting furnaces.

These upgrades will allow the smelter to produce a broader range of foundry alloys. They will also expand the range of ingot sizes and formats available to customers.

That flexibility matters for downstream users. Automotive, packaging and industrial customers often require specific alloy chemistries, product formats and recycled-content profiles.

The addition of post-consumer recycled aluminium also improves Mosjøen’s ability to serve customers that want lower embedded carbon and more circular material flows. Recycled aluminium can significantly reduce energy intensity compared with primary production.

For Alcoa, the investment strengthens product differentiation. The company can offer not only low-carbon Norwegian smelter output, but also recycled-content ingot and cast alloy options.

Norway Strengthens Europe’s Low-Carbon Aluminium Base

Mosjøen’s location gives the project a strong sustainability profile. Norway’s power system supports lower-carbon aluminium production, making the smelter strategically valuable for European customers.

Alcoa said the increased capacity and recycling capability position Mosjøen as a cornerstone of low-carbon aluminium supply across Europe. That message reflects the market’s shift toward greener metal, not just more metal.

European aluminium buyers are facing tighter carbon, origin and supply-chain expectations. Automotive manufacturers need lightweight materials with credible sustainability claims, while packaging producers are under pressure to increase recycled content.

The project also strengthens Europe’s aluminium supply resilience. New capacity at an existing low-carbon smelter reduces reliance on more carbon-intensive or geopolitically exposed supply routes.

The expansion does not represent a completely new smelter build. Instead, it upgrades an established asset with additional casting, melting and recycling flexibility.

That approach is practical. It adds capacity and product capability without the longer timeline and higher execution risk of a greenfield primary aluminium project.

The Metalnomist Commentary

Alcoa’s Mosjøen investment shows that the next phase of aluminium competitiveness is about carbon profile, recycling capability and product flexibility. European customers will increasingly reward suppliers that can combine low-carbon power, recycled feedstock and qualified alloy formats.

Chalco Aluminium Output Rose in 2025 as Primary Metal Prices Supported Revenue

Chalco Aluminium

Chalco aluminium output increased in 2025 as the Chinese state-owned producer raised both primary aluminium and alumina production. The company’s primary aluminium output, including aluminium alloy, rose by 6.2% on the year to 8.08mn t.

Primary aluminium sales also increased by 6.2% to 8.07mn t, showing that Chalco was able to convert higher output into stronger market deliveries. The result reflected China’s stable aluminium demand base and firmer metal prices during the year.

Chalco aluminium output growth came as China’s primary aluminium capacity approached Beijing’s 45mn t ceiling. The company said national capacity reached 44.83mn t by the end of 2025, leaving limited room for further domestic expansion.

Alumina Growth Faced Price Pressure From New Capacity

Chalco produced 17.35mn t of metallurgical alumina in 2025, up 2.9% from the previous year. Metallurgical alumina remains the key feedstock for primary aluminium production, making its pricing central to smelter economics.

The company’s fine alumina output also rose by 4.6% to 4.51mn t. However, metallurgical alumina sales increased by only 1.1% to 6.42mn t, reflecting weaker market conditions in the alumina segment.

China’s alumina capacity expanded sharply by 10.3mn t in 2025, while output rose by 8.3%. But aluminium demand growth was constrained by the national capacity cap, creating a mismatch between alumina supply growth and smelter demand.

As a result, alumina prices fell sharply and Chalco’s alumina revenue dropped by 16.8% from a year earlier. This shows how quickly upstream feedstock profitability can weaken when capacity expands faster than downstream demand.

Aluminium Prices Remained Stronger Despite Capacity Limits

Chalco aluminium output benefited from firmer aluminium prices in 2025. The company said aluminium prices increased alongside gold and copper, supporting a 6.8% year-on-year rise in aluminium revenue.

This contrast between alumina and aluminium is important. Alumina faced surplus pressure, while primary aluminium remained better supported by capacity discipline, geopolitical risks and demand from transportation and power electronics.

Chalco expects China’s domestic alumina market to remain in surplus as new domestic and overseas capacity continues to come online. At the same time, it expects aluminium prices to stay relatively high but more volatile.

The outlook reflects a structural divide in China’s aluminium chain. Alumina producers face oversupply risk, while smelters benefit from a tighter national capacity ceiling and stronger downstream demand.

The Metalnomist Commentary

Chalco’s 2025 results show that China’s aluminium value chain is no longer moving in one direction. Alumina is entering a surplus cycle, while primary aluminium remains supported by capacity limits and industrial demand. That split will shape margins across Chinese aluminium producers in 2026.

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.

India Aluminium BIS Certification Raises Quality Bar for Domestic Supply

BIS

India aluminium BIS certification is becoming a formal market requirement as the government enforces the aluminium and aluminium alloy products Quality Control Order 2026. The order mandates Bureau of Indian Standards certification for a wide range of aluminium products sold in the domestic market.

The regulation took effect on 11 March 2026 and replaces the earlier 2025 order. The Ministry of Commerce and Industry introduced the measure to improve product quality, strengthen consumer safety, and standardise aluminium products across India’s industrial supply chain.

India aluminium BIS certification will apply to products such as rods, bars, sheets, and composite panels. These materials are used across infrastructure, engineering, electrical equipment, packaging, aerospace, and household applications, making the order significant for both producers and downstream manufacturers.

Aluminium Producers Face New Compliance Timelines

Manufacturers must now secure a valid BIS licence before selling covered aluminium products in India. Certification will follow Scheme-I of Schedule II under the BIS regulations, 2018, which requires compliance with relevant Indian Standards and testing procedures.

The government has introduced phased deadlines to reduce disruption across different enterprise sizes. Critical aluminium products face immediate compliance, while general engineering aluminium products will follow a staggered schedule.

Large enterprises must comply by 1 December 2026. Small enterprises will have until 1 March 2027, while micro enterprises must comply by 1 June 2027. This phased structure gives smaller manufacturers more time to adapt their testing, documentation, and quality control systems.

Quality Control Order Reshapes India’s Aluminium Market

India aluminium BIS certification will likely raise the entry barrier for low-quality or inconsistent aluminium products. This could support more disciplined domestic production and reduce the circulation of non-standard material in key industrial sectors.

The order also has trade and procurement implications. Importers and domestic suppliers will need to align product specifications with Indian Standards before selling into the local market. However, exemptions remain for exports and research activities.

The R&D exemption allows up to 200kg of annual imports without BIS certification, provided the material is not sold and is later disposed of as scrap. This gives laboratories, universities, and product development teams limited flexibility while keeping commercial sales under the certification framework.

For India’s aluminium industry, the order signals a stronger policy focus on quality, traceability, and industrial standardisation. As demand grows from infrastructure, power equipment, packaging, aerospace, and manufacturing, certified aluminium supply will become more important for competitiveness and reliability.

The Metalnomist Commentary

India’s aluminium Quality Control Order is not just a standards update. It is a market-filtering mechanism that could reward compliant producers and pressure weaker suppliers out of higher-value industrial channels.

Mercedes bets on green aluminium from Norway's Hydro for next-gen CLA

Mercedes aluminium body

Mercedes is turning to green aluminium from Norway's Hydro to cut embedded emissions in its new CLA model. The green aluminium from Norway's Hydro is certified at just 3kg of CO₂ per kilogram of metal across mining, refining, smelting and casting. This compares with a global average of 16.7kg, giving Mercedes a meaningful reduction in material-related emissions. The alloy also contains 25pc post-consumer scrap, which further lowers its lifecycle footprint and supports circular-economy targets.

However, the company’s claim that CLA production is “net carbon-neutral” still depends on offsets. Mercedes powers the plant with 100pc renewable electricity, mainly externally sourced hydropower, which materially cuts scope 2 emissions. But scope 1 emissions from on-site processes and logistics, as well as upstream emissions from suppliers, remain. Therefore, the move to green aluminium from Norway's Hydro is a genuine step forward, even if the overall net-zero claim rests partly on controversial offset mechanisms that investors often scrutinise.

Green aluminium supports low-carbon steel and battery initiatives

The CLA’s use of green aluminium from Norway's Hydro forms part of a broader materials decarbonisation strategy. Mercedes says its latest battery cell design cuts emissions by about 30pc per cell through renewable energy in anode and cathode production. The company also relies on “net carbon-neutral” cell manufacturing at suppliers, since it does not produce cells in-house. As a result, the true impact depends on supplier practices and verification of their renewable power usage.

Meanwhile, Mercedes is layering in low-carbon steel to tackle emissions in chassis and body-in-white applications. The CLA incorporates steel from US producer Nucor’s Econiq-RE range, made using 100pc renewable energy. Mercedes also has a deal with Steel Dynamics for more than 50,000 t/yr of CO₂-reduced steel for its Tuscaloosa plant. Together with green aluminium from Norway's Hydro, these supply contracts show how OEMs are weaponising procurement to reduce embodied carbon ahead of incoming carbon border measures.

Demand for certified green aluminium rises faster than headline prices

Demand for certified low-carbon aluminium is rising as automakers prepare for tighter climate regulations and potential carbon border charges. Carmakers want to cut embedded emissions at the material level, especially for high-intensity metals such as aluminium and steel. This is likely to support growing premiums for Hydro’s Reduxa-style green aluminium grades and similar products from competitors. As a result, upstream smelters with renewable power and high scrap usage gain a strategic pricing advantage.

However, headline aluminium prices on global exchanges remain relatively stable despite bullish long-term forecasts. London Metal Exchange cash aluminium has traded in a narrow range over the past year, even as demand for differentiated “green” material accelerates. This suggests that the value is migrating into contract premiums and long-term offtake deals instead of the base price. Over time, producers unable to demonstrate low-carbon credentials may find themselves pushed into a discounted “grey” segment of the market.

The Metalnomist Commentary

Mercedes’ partnership around green aluminium from Norway's Hydro shows how decarbonisation is increasingly driven by procurement, not just tailpipe regulation. For metals producers, the message is clear: access to cheap renewable power and high-quality scrap streams will shape competitiveness more than pure tonnage growth. As carbon accounting tightens, the premium for verifiable low-carbon tonnes is likely to widen, rewarding early movers across the aluminium value chain.

Pure Aluminum Michigan Furnace Restart Depends on Orders and Scrap Availability

Pure Aluminum

Pure Aluminum Michigan furnace restart plans could bring the company’s reverberatory furnace back online from mid-June, after a pump failure took the equipment offline two months ago. The secondary alloy producer said the furnace is capable of operating after being retrofitted with a conventional pump.

Pure Aluminum Michigan furnace restart timing will depend on customer orders currently under negotiation. Scrap availability will also influence when the Saranac, Michigan, unit resumes production.

Pure Aluminum Michigan furnace restart is important because secondary aluminium alloy producers rely on furnace flexibility, scrap access and customer commitments to maintain supply. Any extended outage can affect alloy availability, scrap procurement and customer confidence.

The company said it has not declared force majeure and has no unfilled contracts with its main sales agent, Traxys. It also said stockpiles helped cover contract needs during the outage.

Rotary Furnace Keeps Customer Supply Moving

Pure Aluminum has continued operating its rotary furnace nonstop to support customers. The rotary furnace has scrap processing capacity of 10mn lb/month.

The company did not disclose utilisation levels, but said it has met customer commitments. That suggests the rotary furnace and inventory planning helped reduce disruption from the reverb furnace outage.

This matters because secondary aluminium production depends on processing flexibility. Rotary and reverberatory furnaces handle scrap streams differently, and each unit can affect melt efficiency, alloy control and production scheduling.

Pure Aluminum pushed back against market talk of broader supply disruption. The company said it had very few supply interruptions during the outage.

The restart decision will therefore be commercial as well as technical. Even if the reverb furnace is ready, Pure Aluminum wants firm customer demand and enough scrap supply before bringing it back online.

Traxys Relationship and Liquidity Remain Strategic Questions

Pure Aluminum’s relationship with Traxys remains an important market issue. The companies signed an agreement in May 2025 under which Traxys would handle scrap procurement, support sales and provide funding for the buildout of the 112,000ft² Saranac plant.

Market participants have questioned whether the companies will continue working together. Pure Aluminum declined to discuss the status of the partnership, while Traxys did not immediately comment.

That uncertainty matters because scrap procurement is central to secondary aluminium economics. Reliable scrap supply can decide furnace utilisation, alloy output and margin stability.

Pure Aluminum also highlighted its liquidity position. The company said it has two undrawn credit lines worth tens of millions of dollars each.

It also received $22mn from the sale of its building to TRW Holdings MI. Pure Aluminum is leasing the site back under an agreement that gives it the option to repurchase the property in three to five years.

The structure gives Pure Aluminum more financial flexibility while preserving operating access to the plant. But the company still needs stable orders, scrap flow and furnace reliability to convert liquidity into production strength.

The Metalnomist Commentary

Pure Aluminum’s outage shows that secondary aluminium supply depends on more than scrap availability. Furnace reliability, procurement partnerships and customer order visibility now decide how quickly recyclers can respond to market demand.

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.

Japan’s Aluminium Imports Decline Due to Weaker Demand in Automotive and Construction Sectors

Japanese aluminium imports saw a significant decrease in June, both on a monthly and yearly basis, driven by reduced demand in the automotive and construction industries. According to customs data, aluminium imports fell by 16.5% month-on-month and 14.3% year-on-year to 84,770 tons in June. This brought the total volume for January to June down by 4.5% year-on-year to 506,818 tons.

The Japan Aluminium Association (JAA) reported a 0.7% year-on-year decrease in the production of aluminium goods in June, totaling 144,775 tons. This decline followed three consecutive months of production growth. Domestic sales of aluminium products also fell by 3.2% year-on-year to 144,944 tons in June. Overall, the total production of aluminium goods in the first half of the year fell by 2.9% year-on-year to 826,365 tons, continuing a three-year downward trend.

The automotive industry, a significant consumer of aluminium, faced reduced demand due to car-testing scandals involving faulty safety data. Major manufacturers such as Daihatsu, Toyota, and Mazda suspended production for periods during the first half of the year to address issues with vehicle safety certification data. Consequently, total passenger vehicle output dropped by 9.8% year-on-year to 3.7 million units from January to June.

In the construction sector, the use of aluminium products fell by 10% to 172,438 tons in the first half of the year. This decline was attributed to project delays caused by rising material and labour costs and a preference for new materials over aluminium for window frames.

Additionally, Japan's imports of secondary aluminium alloy ingots (ADC12) were 77,414 tons in June, down by 2% month-on-month and 24% year-on-year, according to the finance ministry.

Indonesia Metals Investment Risk Rises as Policy Shifts Cloud Downstreaming

Indonesia Nickel mining

Indonesia metals investment faces growing uncertainty as frequent policy changes test foreign investor confidence in the country’s mining and processing sector. Jakarta’s latest move to route key commodity exports through a new state-owned enterprise adds another layer of complexity to an already policy-heavy operating environment.

Indonesia metals investment has been supported for years by the country’s downstreaming strategy, especially in nickel. However, investors are now watching whether sudden changes in royalties, export levies, price floors, export proceeds rules and RKAB approvals could weaken the economics of new projects.

Indonesia metals investment remains strategically important because the country dominates global nickel supply and is attracting major aluminium, battery, ferro-alloy and electric vehicle-related projects. But policy direction and policy predictability are not the same thing.

The government’s natural resource strategy is clear. It wants tighter export control, higher state revenue, more domestic value addition and greater retention of foreign exchange. The main concern is how quickly and broadly those rules are implemented.

DSI Export Rule Adds New Uncertainty to Nickel Downstreaming

The planned use of Danantara Sumberdaya Indonesia as a state export channel is the clearest sign of Jakarta’s tightening control over commodity flows. The policy initially targets palm oil, coal and ferro-alloys, but nickel market participants expect broader implications.

Nickel pig iron is likely to be affected because it is a ferro-alloy. That matters because Indonesia’s nickel growth has been built around NPI, stainless steel, nickel matte and battery-material processing.

A centralised export model could reshape how contracts, pricing and payments are handled. If DSI becomes the sole counterparty for overseas buyers, private producers and traders may lose commercial flexibility.

The policy follows several other changes. Indonesia has revised government-mandated price floors, required export proceeds to remain in domestic banks for at least 12 months, adjusted royalty rates, introduced export levy plans and modified the RKAB application process.

These measures all fit Jakarta’s broader resource nationalism agenda. But rapid revisions make it harder for companies to model long-term returns.

Nickel producers have already faced uncertainty over royalty and export duty proposals. The government announced planned changes in April, then postponed them in May before the intended June start date.

This pattern may show that officials are willing to listen to industry feedback. But it also suggests that policy design and communication remain incomplete before major measures are announced.

The risk is that investors begin pricing Indonesia as a less predictable jurisdiction. That could slow downstreaming projects, especially those requiring large capital commitments, long payback periods and imported technology.

Several battery and nickel projects have already faced delays from feedstock constraints, regulatory approvals or weaker market conditions. These include projects linked to Chengtun, Hanrui and LG Energy Solution.

Some operations have also cut or halted production because of delayed or insufficient RKAB approvals. This shows how permitting and quota decisions can directly affect physical output.

Aluminium and Manganese Projects Face Spillover Risk

The market’s immediate focus is nickel, but the risk is wider. If the DSI model expands across more strategic commodities, aluminium and manganese investors could also face new pricing and export constraints.

Chinese aluminium producers have been increasing overseas investment in Indonesia since China imposed a 45mn t/yr cap on domestic primary aluminium capacity. Indonesia offers power access, industrial park infrastructure and proximity to Asian growth markets.

Tsingshan is building an 800,000 t/yr aluminium smelter in Indonesia. Nanshan Aluminium plans to expand its Bintan Industrial Park facility to 500,000 t/yr, while Hua Chin Aluminum Indonesia commissioned a 500,000 t/yr smelter in 2025.

Some Chinese companies are also considering downstream aluminium processing projects in Indonesia. These investments would move the country beyond smelting and into fabricated products.

But discounted sales from Chinese-invested Indonesian smelters could become harder if aluminium exports are eventually routed through DSI. A state-controlled export platform may not allow the same commercial discounting that buyers currently use.

That would raise costs for Chinese buyers and could change the economics of Indonesia-based aluminium supply chains. It could also affect trade flows if producers lose flexibility in pricing and contract structures.

Manganese may also be exposed. Tsingshan has invested in Indonesian manganese production, with six lines and combined capacity of 100,000 t/yr.

The broader lesson is that Indonesia’s downstreaming success depends on credibility as well as control. Investors can adapt to higher royalties, stricter export rules or local processing requirements if implementation is clear and stable.

Uncertainty is more damaging than regulation itself. If companies cannot predict which products will be covered, how prices will be set or when rules will take effect, they may delay capital spending.

Indonesia still has enormous strategic leverage in nickel and growing relevance in aluminium, manganese and battery materials. But maintaining that position will require policy discipline, transparent consultation and practical implementation.

The Metalnomist Commentary

Indonesia is not retreating from downstreaming; it is tightening state control over the value chain. The danger is that too many rapid policy shifts could weaken the investment confidence needed to build the very processing base Jakarta wants to protect.

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.

Trimet Aluminium Recycling Capacity Rises as Essen Expands Scrap Handling

Trimet aluminium

Trimet aluminium recycling capacity will rise after the company completed a new scrap storage hall in Essen. The project upgrades how Trimet handles aluminium scrap grades and primary inputs. Trimet aluminium recycling capacity will increase by about 16,000 tonnes per year. Therefore, the site can push higher recycled output with tighter quality control.

The new hall supports segregated storage for multiple aluminium scrap grades. The design also separates aluminium pieces and primary metal inputs. Meanwhile, new outdoor storage areas extend sorting flexibility. As a result, Trimet can reduce cross-contamination and improve melt planning.

Better scrap segregation targets yield, quality, and throughput

Aluminium scrap storage hall investments often deliver fast operational gains. Better separation improves furnace charge consistency and reduces dross losses. However, recyclers still face volatility in scrap availability and pricing. Therefore, storage infrastructure becomes a strategic tool, not just a logistics upgrade.

The Essen upgrade also supports faster internal workflows. Material moves with clearer identification and fewer handling steps. Meanwhile, quality teams can enforce tighter inbound controls. As a result, Trimet can offer more predictable recycled aluminium specifications to customers.

EU scrap export restrictions could reset regional scrap flows

EU scrap export restrictions may reshape the European aluminium scrap market next year. European recyclers have struggled as export buyers outbid domestic processors. However, policy measures that keep more scrap in Europe could increase feedstock availability. Therefore, recycling economics can improve for plants like Essen.

The policy shift could also influence contracting behavior. Buyers may seek longer supply agreements to secure volumes. Meanwhile, recyclers will compete on conversion efficiency and compliance. As a result, operational excellence will matter as much as scrap access.

The Metalnomist Commentary

This investment signals a disciplined push toward higher recycled content and better process control. However, Trimet’s upside will depend on how quickly scrap flows normalize in Europe. The strongest recyclers will pair feedstock security with consistent alloy quality.

Japan’s Aluminium Imports See Sharp Decline in August

Japan’s Aluminium

Japan experienced a significant drop in aluminium imports in August, both compared to the previous month and the previous year, due to a combination of slower demand, logistical issues, and disruptions caused by the late-August typhoon. The storm's impact, along with a suspension of construction projects, hit the domestic aluminium product market particularly hard.

Imports of primary aluminium fell by 15% month-on-month and by 10% year-on-year, reaching 85,992 tonnes. For the January-August period, total aluminium imports reached 693,627 tonnes, a 2.6% decline compared to the same period last year, according to customs data.

Production and Sales Impact

The Japan Aluminium Association (JAA) reported that domestic production of aluminium products in August also saw a 6.1% year-on-year decrease, producing 116,567 tonnes. Domestic sales were similarly affected, decreasing by 9.6% to 119,119 tonnes. This decline in sales is attributed to delayed construction plans following Typhoon Shanshan and decreased beverage consumption, which JAA links to rising living costs.

However, not all sectors faced declines. Car production in July increased by 3.3% year-on-year to 811,981 units, showing some resilience in automotive demand. In contrast, new housing projects fell slightly by 0.2%, reflecting a more subdued demand in the construction sector.

Japan’s imports of secondary aluminium alloy ingots (ADC12) were also down by 5% from the previous month, totaling 90,895 tonnes in August, according to the finance ministry.

India Aluminium Quality Control Rules Tighten for 2025 Rollout

India aluminium

Government Targets Low-Quality Imports with Stricter Compliance Measures

India aluminium quality control measures will become stricter from October 2025, as the government enforces a new Quality Control Order (QCO). The regulation targets several aluminium and alloy products, including welded irrigation tubes, EC-grade rods, and wrought bars under specific Indian Standards (IS 733:1983, IS 5484:1997, IS 16011:2012). This initiative seeks to prevent substandard imports from neighboring countries.

Phased Implementation and Enterprise Exemptions

The India aluminium quality control regulation includes exemptions for small and micro enterprises. Small businesses can continue importing non-compliant aluminium products until January 2026, while micro enterprises have until April 2026. Research and development imports of up to 200kg also remain exempt if not commercially sold. This phased implementation ensures a smoother industry transition without major supply disruptions.

Export-Focused Adjustments and Domestic Safeguards

The latest amendment allows exemptions for select imported aluminium products, while the 2024 amendment previously exempted domestically manufactured aluminium destined for export. Therefore, the policy balances trade facilitation with domestic industry protection. India aluminium quality control frameworks now aim to raise product standards, reduce unfair competition, and align with broader industrial policy goals.

The Metalnomist Commentary

India’s aluminium QCO signals a broader industrial strategy that protects domestic producers while encouraging higher-grade imports. The transition period for SMEs reflects pragmatic governance, though it will require vigilance to prevent circumvention via R&D or micro-business loopholes.

Alba and Daiki Partner on Aluminium Dross Recycling Venture in Bahrain

Aluminium Bahrain (Alba), one of the world's largest aluminium producers, has announced a strategic partnership with Japanese alloy producer Daiki Aluminium Industry to establish an aluminium dross processing business in Bahrain. The collaboration aims to enhance sustainability by reducing waste from Alba's smelting operations.

The two companies have signed an initial agreement to form a joint venture that will construct a state-of-the-art aluminium dross processing facility. This new plant will focus on recovering aluminium metal from the dross—an industrial byproduct of smelting—generated at Alba's operations. By recycling this material, the venture will not only reduce waste but also support Alba's and Bahrain's broader sustainability goals.

Alba's chief executive, Ali Al Baqali, emphasized the significance of the partnership, stating, "This joint venture will serve as a model for sustainable aluminium production, demonstrating the power of collaboration to drive positive change."

While the announcement marks a significant step forward for both companies, details regarding the timeline for the facility's construction and commissioning remain undisclosed. Additionally, the financial specifics of the project have not been provided.

The partnership between Alba and Daiki highlights a growing trend in the aluminium industry towards sustainable practices and efficient resource management. As global demand for aluminium continues to rise, initiatives like this are becoming increasingly important in minimizing the environmental impact of production processes.

Ferroglobe Silicon Shipments Fall as European Plants Face Import Pressure

Ferroglobe

Ferroglobe silicon shipments fell in the first quarter after the company suspended production across its European silicon metal plants in October. The decline shows how weak demand and low-priced imports are reshaping Europe’s silicon metal market.

Ferroglobe silicon shipments dropped by 15.9% year on year to 30,533t in January-March. The company later restarted one of two furnaces at its Anglefort plant in France to maintain an EU operating presence.

Ferroglobe silicon shipments remain under pressure because European production costs are still struggling to compete against lower-cost third-country imports. The company warned that the current market structure is no longer viable during a prolonged period of depressed demand.

The issue is strategically important because silicon metal supports aluminium alloys, silicones, solar materials, semiconductors and industrial chemicals. If European smelting capacity continues to close, the region’s downstream industries will become more dependent on imported feedstock.

European Silicon Metal Faces Low-Cost Import Pressure

Ferroglobe said the European silicon metal market remains under pressure from China and Angola. Angola has emerged as a faster-growing supplier into the EU, increasing its market share during the first two months of 2026.

Angola supplied 993t of silicon metal to the EU in February, up by around two-thirds from a year earlier. Its EU market share more than doubled to 3.3% in January-February from 1.5% a year earlier.

This matters because even modest import share gains can influence pricing when demand is weak. European producers with higher energy and operating costs have limited room to absorb lower selling prices.

Ferroglobe has called for the EU to introduce anti-dumping duties on certain third-country suppliers selling at low prices into the bloc. The company made the request after the European Commission excluded silicon metal from last year’s safeguard investigation.

The policy question is now becoming more urgent. Europe wants strategic materials security, but it also needs trade tools that keep domestic production viable when imports undercut regional cost structures.

Without stronger protection or demand recovery, European silicon metal output could remain constrained. That would weaken the region’s ability to support aluminium, chemicals, solar and advanced manufacturing supply chains from local feedstock.

Ferro-Alloy Sales Offset Silicon Weakness

Ferroglobe’s broader first-quarter performance was supported by stronger silicon-based and manganese-based alloy shipments. This helped offset weaker silicon metal volumes.

Shipments of silicon-based alloys rose by 41.6% year on year to 60,674t. The increase was driven by stronger US demand for ferro-silicon.

However, average selling prices for silicon-based alloys fell by 4.9% to $2,016/t. Competitive conditions in the US and South Africa limited pricing power despite stronger volumes.

Manganese-based alloy sales also improved sharply. Shipments rose by 27.5% to 85,743t, supported by recently implemented safeguard measures.

The average selling price for manganese-based alloys increased by 12.8% to $1,250/t because of higher European prices. This shows how trade measures can directly support pricing when regional supply protection is in place.

Ferroglobe’s total sales rose by 13.2% year on year to $347.7mn. The increase came from higher silicon-based and manganese-based alloy volumes, along with stronger manganese alloy pricing.

Adjusted earnings before interest, taxes, depreciation and amortisation increased by 112.5% to $3.3mn. The improvement was meaningful, but margins remain thin for a company operating in volatile alloy and silicon markets.

The company is also considering reopening operations in Venezuela. Those assets are close to the US market and could benefit from low-cost energy, raw materials and favourable logistics.

That strategy reflects the changing economics of ferro-alloy and silicon production. Energy cost, trade access, import protection and proximity to customers are becoming more important than legacy European capacity alone.

The Metalnomist Commentary

Ferroglobe’s results show that Europe’s silicon metal problem is not only weak demand; it is structural cost exposure against lower-priced imports. If the EU wants domestic critical industrial material capacity, silicon metal may need the same policy seriousness now being applied to batteries, magnets and semiconductors.

Vedanta Metals Production Hits Record in FY2025-26 on Efficiency Gains

Vedanta Metals

Vedanta metals production reached a record level in the April 2025-March 2026 fiscal year as efficiency improvements, mine restarts and capacity additions lifted output across key businesses. The Indian mining group reported stronger production in alumina, aluminium, zinc, lead, chrome ore, ferro-chrome and copper cathode.

The strongest increase came from the Lanjigarh alumina refinery, where output rose by 48% on the year to 2.91mn t after the second furnace restarted in the first quarter. This strengthened Vedanta’s upstream aluminium raw material base and improved integration across its aluminium value chain.

Vedanta metals production growth also reflected better utilisation of existing assets. Aluminium output rose by 1% to 2.45mn t, compared with 2.42mn t a year earlier, showing stable primary metal production despite a more challenging cost and energy environment.

Alumina and Base Metals Strengthened Vedanta’s Integrated Platform

The Lanjigarh refinery result was strategically important because alumina availability directly affects aluminium smelter economics. Higher alumina output can reduce exposure to external feedstock volatility and support more stable aluminium production planning.

Zinc and lead production also improved during the year. Combined output reached 1.11mn t, up 2%, supported by better mined metal grades and higher production levels.

This growth reinforced Vedanta’s position across India’s industrial metals chain. Zinc and lead remain important for galvanising, batteries, infrastructure, alloys and manufacturing, while aluminium continues to support transport, power, packaging and construction demand.

Chrome, Ferro-Chrome and Copper Output Added Downstream Depth

Vedanta metals production also benefited from a sharp recovery at Facor, the group’s ferro-alloys subsidiary. Chrome ore production rose by 49% to 371,000t after the restart of the Kalarangiatta mines and expanded environmental clearance at the Ostapal mine.

Ferro-chrome output increased by 21% to 101,000t. This matters because ferro-chrome is a critical input for stainless steel production, linking Vedanta’s chrome ore base to India’s alloy and steelmaking supply chain.

Copper cathode production at the Silvassa smelter rose by 15% to 170,000t. Vedanta attributed the increase to debottlenecking, operational efficiency and more diversified raw material sourcing, all of which improve supply resilience in a tight copper market.

The Metalnomist Commentary

Vedanta’s record output shows how Indian metals producers are using operational upgrades and mine restarts to increase domestic supply. The bigger strategic point is that India’s industrial growth needs integrated capacity across alumina, aluminium, zinc, ferro-alloys and copper, not only isolated production gains.

China Expands Copper and Aluminium Duty Exemptions for 2025

Recycled Copper

In a bid to promote sustainable growth, China has announced expanded import duty exemptions on recycled copper and aluminium feedstocks for 2025. This change is part of the country’s broader strategy to bolster green and low-carbon development in its metal industries. The move reflects China’s ongoing efforts to ease restrictions on secondary copper and aluminium imports, which could have significant implications for both domestic and international markets.

Expansion of Duty Exemptions

Under the new policy, China will expand the HS code 74040000 to include “recycled copper and alloy feedstock” for 2025, up from just "recycled brass copper feedstock" and "recycled copper feedstock" in 2024. Similarly, the HS code 76020000 will also broaden to cover “recycled aluminium and alloy feedstock” from the previous scope of "recycled cast aluminum alloy feedstock" in 2024. The import duties for both categories will remain at zero for 2025, continuing the exemptions in place for 2024.

This expansion is intended to enhance the country’s circular economy and support the shift toward greener practices in the recycling and processing of metals. According to China’s Ministry of Commerce, the adjustments will help promote low-carbon development, driving demand for sustainable production methods.

The move follows an increase in China’s copper scrap imports, which saw a 14% rise from January to November in 2024 compared to the previous year, signaling a positive trend for the country's metal recycling sector.

Continued Duties on Other Base Metals

While China is easing import duties on certain recycled metals, the government has decided to keep export duties on various base metals, minor metals, ferro-alloys, and rare earths in place for 2025. This includes maintaining the 40% export duty on ferro-chrome, a 25% duty on silico-manganese and ferro-silicon, and a 20% export duty on ferro-manganese. These duties align with China’s broader objective of controlling the export of energy-intensive and pollution-heavy products.

The country will also continue with export duties on a variety of concentrates, such as lead, zinc, tantalum, and niobium, as well as a 20% duty on tin, tungsten, and antimony concentrates, which are less frequently exported due to China’s limited domestic resources of these metals. Additionally, China will maintain duties on several metals, including a 5-15% export duty on copper, nickel, and zinc alloys and products.

China's new policy also includes a zero import duty on spodumene for 2025, marking another significant move in its strategic approach to securing key raw materials for its growing battery and electronics industries.

Hydro Alumetal integration positions Hydro as recycled aluminium leader

Hydro

Hydro Alumetal integration marks a decisive shift in Europe’s recycled aluminium market. Norway’s Hydro will fully integrate Alumetal and rebrand its four recycling plants under the Hydro name. The move aims to create one unified supplier brand for automotive foundry alloys across Europe.

Hydro Alumetal integration builds scale in European foundry alloys

Hydro Alumetal integration brings 280,000 t/yr of recycled aluminium capacity under a single industrial platform. The three Polish sites will operate as Hydro Kety, Hydro Gorzyce and Hydro Nowa Sol, while Hungary’s plant becomes Hydro Komarom. These locations primarily serve the automotive industry, which demands consistent, certifiable foundry alloys.

Hydro already invested in modernising and expanding the Kety plant to upgrade productivity and product quality. As a result, the integrated footprint can support more complex alloy portfolios and tighter customer specifications. The company also gains better logistics coordination across central Europe, which helps large original equipment manufacturers manage just-in-time deliveries.

By presenting “one face to the market”, Hydro Alumetal integration is designed to lift its share in European foundry alloys. A unified commercial strategy should also strengthen pricing power in a segment under pressure from energy costs and import competition. Over time, integration can unlock further synergies in scrap sourcing, melting efficiency and low-carbon product development.

The Metalnomist Commentary

Hydro Alumetal integration underlines how recycled aluminium is becoming a core strategic pillar for European metals groups. The move tightens Hydro’s grip on automotive foundry alloys just as carmakers intensify their focus on circularity and embedded CO₂. The key watchpoint will be how quickly Hydro converts brand integration and past investments into higher margins and premium low-carbon alloy offerings.