Aluminum Market Set for Wave of Scrap as Industry Decarbonizes

(Bloomberg) — Recycled metal will drive a massive wave of aluminum that’s about to hit global markets, as the industry comes under more pressure to decarbonize.

Over the five years through 2026, the world will add 22 million tons of annual capacity of aluminum made from scrap, according to Jorge Vazquez, managing director of industry consultant Harbor Aluminum Intelligence Unit LLC. In China alone, expansion projects will add about 15 million tons of new secondary capacity during that period.