China's aluminium scrap market experienced a slowdown in the first half of 2026, with import volumes declining year-over-year amid higher international prices, tighter overseas availability, and weaker domestic demand. According to data reported by AlCircle on October 7, 2026, China imported 981,000 tonnes of aluminium scrap in H1 2026, representing a 3.2 percent decrease from 1 million tonnes recorded in the same period of 2025. However, the current volume remained 3.6 percent higher than the 947,000 tonnes imported in H1 2024, indicating that import levels remain above pre-2025 baselines.
The H1 2026 total comprised 526,000 tonnes in the first quarter and 455,000 tonnes in the second quarter, compared with 507,000 tonnes and 506,000 tonnes respectively in H1 2025. The sequential decline from Q1 to Q2 highlights softening momentum in China's scrap purchasing activity throughout the semester. Overseas supply constraints emerged as a primary factor constraining import performance.
Chinese buyers faced a less favourable international scrap market characterized by tighter global scrap availability, stricter export and environmental controls in source countries, and elevated international aluminium prices. According to SMM analysis cited in the report, overseas aluminium scrap prices rose in tandem with the LME aluminium rally, reducing the availability of competitively priced recycled raw materials for Chinese purchasing managers. The LME three-month aluminium price reached USD 3,787.50 per tonne on June 2, marking its highest level in approximately four years, driven by Middle East supply disruptions and logistics risks.
The analysis also noted that stricter overseas scrap recovery and export policies, combined with environmental controls, further restricted the supply of imported recycled aluminium materials. Domestic demand weakness compounded the supply-side pressures. The price differential between primary aluminium and scrap had narrowed to historically low levels, significantly weakening scrap's traditional cost advantage and reducing purchasing incentives for Chinese industrial consumers.
Geographic supply patterns shifted notably across H1 2026. Thailand, the largest single supplier, experienced a sharp contraction with shipments declining 24.0 percent to 199,000 tonnes from 262,000 tonnes year-over-year. Quarterly flows from Thailand fell from 133,000 tonnes to 111,000 tonnes in Q1 and from 129,000 tonnes to 88,000 tonnes in Q2.
By contrast, the United Kingdom reversed course, increasing shipments to 129,000 tonnes in H1 2026 from 123,000 tonnes in H1 2025, a 4.9 percent gain. UK supplies totalled 69,000 tonnes in Q1 and 60,000 tonnes in Q2 2026, compared with 61,000 tonnes and 62,000 tonnes respectively in the prior year period. Japanese shipments to China declined 10.0 percent to 99,000 tonnes in H1 2026 from 110,000 tonnes in H1 2025, with imports falling from 56,000 tonnes to 51,000 tonnes in Q1 and from 54,000 tonnes to 48,000 tonnes in Q2.
United States supplies amounted to 65,000 tonnes, down 3.0 percent from 67,000 tonnes in H1 2025, though US supplies demonstrated volatility with a drop from 35,000 tonnes to 25,000 tonnes in Q1 followed by a recovery from 32,000 tonnes to 40,000 tonnes in Q2. Meanwhile, Australia supplied 61,000 tonnes, up 5.2 percent from 58,000 tonnes in H1 2025, with imports increasing from 30,000 tonnes to 36,000 tonnes in Q1 before declining from 28,000 tonnes to 25,000 tonnes in Q2. China's aluminium scrap exports demonstrated contrasting momentum.
Exports to the global market reached 460 tonnes in H1 2026, up 19.2 percent from 386 tonnes in H1 2025. The export surge was driven entirely by Q2 performance, with exports surging 69.9 percent in that quarter despite a 22.1 percent decline in Q1. This created a divergent H1 picture for China's aluminium scrap trade: inbound flows weakened substantially under supply, price, and demand pressures, while outbound shipments accelerated, particularly driven by the sharp rise in second-quarter exports.
Source: AlCircle.com, October 7, 2026. Analysis based on SMM data.
Source: alcircle.com