Aluminum Scrap Metal Market Report: November 2025

US aluminum scrap prices in November 2025 maintained the strong and steady conditions established in preceding months, with most grades averaging $1.20-$1.25 per pound depending on quality and specifications. Extrusion aluminum, the most valuable common grade, commanded prices between $0.85-0.95 per pound, while aluminum cans traded in the $0.50-0.55 per pound range for clean material in volume quantities. Cast aluminum held steady near $0.55 per pound, with aluminum radiators fetching similar pricing for properly prepared material.

Primary aluminum pricing on the London Metal Exchange provided an important benchmark for scrap values, with the commodity declining to $2,810 per metric ton on November 20, down 0.12% from the previous trading session. However, this minor daily fluctuation masked the stronger longer-term trend, with prices up 1.04% over the preceding month and maintaining a robust 6.68% year-over-year gain. These elevated primary aluminum prices created a supportive floor for scrap values, as secondary smelters benefited from the substantial cost advantage of recycled feedstock versus virgin material.

Regional pricing variations remained modest throughout November, reflecting the relatively fungible nature of aluminum scrap and efficient domestic logistics networks. Premium grades meeting automotive specifications commanded the highest values, particularly alloys suitable for structural applications and battery enclosures in electric vehicles. The spread between commodity-grade scrap and automotive- specification material widened marginally as manufacturers increased quality requirements, creating opportunities for processors capable of rigorous sorting and contamination control.

The stability observed across scrap grades reflected balanced supply-demand fundamentals, with neither bulls nor bears able to establish meaningful momentum. Automotive production running 6% higher than the previous year provided consistent demand support, while adequate scrap generation prevented supply tightness that might have driven prices significantly higher. This equilibrium proved particularly notable given the persistent disruptions from tariff policies and shifting international trade patterns.

The automotive sector continued driving aluminum scrap demand throughout November, with manufacturers maintaining robust production schedules despite approaching year-end. North American vehicle output remained 6% higher than comparable 2024 levels, reflecting improved supply chain conditions and healthy order books. The ongoing transition to electric vehicles intensified aluminum consumption per unit, with EVs requiring substantially more aluminum content than traditional internal combustion vehicles for battery enclosures, structural components, and heat management systems.

The secular trend toward vehicle lightweighting maintained momentum, with average aluminum content per vehicle projected to reach 556 pounds by 2030, compared to just 120 pounds in 1980. This dramatic increase represents nearly 3 million metric tons of additional aluminum demand annually, approximately 30% of total US aluminum product consumption. The automotive sector's aluminum appetite created sustained demand for high-grade scrap materials meeting stringent specifications for strength, corrosion resistance, and thermal stability.

Electric vehicle production specifically provided premium pricing opportunities for processors able to supply appropriate alloys. Battery enclosure applications required specialized grades offering both structural integrity and thermal management properties, commanding significant premiums over commodity scrap. The rapid expansion of EV manufacturing capacity throughout North America created geographic diversification of aluminum demand, reducing traditional regional concentration risks while opening new market opportunities for strategically located processors.

Packaging demand, particularly from beverage can production, maintained steady consumption levels despite concerning recycling rate trends. US beverage can manufacturers consumed approximately 1.4 million metric tons of aluminum annually, providing baseline demand support that proved resilient to economic fluctuations. However, the industry continued grappling with recycling rates that hit 43% in 2023, well below historical averages and representing substantial lost material value. This inefficiency created both challenges from reduced scrap availability and opportunities for processors able to improve collection systems.

Construction and infrastructure applications provided additional demand support, particularly for electrical transmission systems where aluminum's conductivity advantages made it indispensable. Power grid modernization initiatives consumed significant aluminum for transmission lines, with 100% of US high voltage systems incorporating aluminum components. Solar panel installations also utilized aluminum extrusions for framing systems, contributing incremental demand as renewable energy deployments accelerated. These applications typically accepted lower-grade material than automotive uses but provided steady volume outlets for processors.

Domestic scrap supply conditions in November reflected the complex trade dynamics created by differential tariff treatment of finished products versus recyclable materials. Between January and June 2025, the US imported approximately 430,000 tonnes of aluminum scrap, representing a 31% increase from 328,000 tonnes during the comparable 2024 period. This surge occurred because aluminum scrap remained exempt from the 50% tariff imposed on finished aluminum products, creating arbitrage opportunities that redirected global trade flows.

The influx of imported scrap created competitive dynamics for domestic generators, as secondary smelters accessed lower-cost international material while finished product prices remained elevated due to tariff protection. European suppliers particularly increased shipments to the US, with concerns about "scrap leakage" emerging as critical recycling feedstock left European markets for higher-priced American destinations. The European Aluminum Association monitored these developments closely, as reduced scrap availability threatened domestic recycling operations' economic viability.

Primary aluminum production constraints continued supporting scrap values by limiting virgin material availability. The US operated just six primary aluminum smelters in 2025, with four running at reduced capacity or temporarily curtailed due to high electricity costs and environmental compliance challenges. Century Aluminum's Mt. Holly facility in South Carolina exemplified these difficulties, operating at approximately 75% of its 230,000 ton annual capacity since 2015. This structural limitation in primary production created persistent demand for secondary aluminum regardless of economic conditions.

China's evolving role in global aluminum markets influenced scrap flows, though the direct impact on US markets remained modest. China doubled its aluminum scrap imports since 2020 and planned to produce 15 million tonnes of recycled aluminum annually by 2027, creating sustained demand for international scrap supplies. However, US exports to China faced retaliatory tariffs on certain scrap commodities imposed in response to American trade policies, complicating direct bilateral trade while encouraging triangular trading patterns through third countries.

Secondary aluminum production facilities maintained steady operating rates throughout November, processing adequate volumes to meet automotive and packaging demand without creating the inventory shortages that might drive prices sharply higher. The efficiency advantages of aluminum recycling— requiring only 5% of the energy needed for primary production—ensured secondary smelters remained economically competitive even as electricity costs pressured primary production. This structural advantage supported the long-term growth trajectory of aluminum recycling regardless of cyclical market fluctuations.

The 50% tariff regime on finished aluminum products remained the dominant policy factor shaping market conditions in November 2025. Implemented initially at 25% on March 12, 2025, and doubled to 50% on June 4, 2025, these tariffs fundamentally altered aluminum trade flows while leaving scrap materials exempt. This differential treatment created unusual market dynamics, as domestic mills paid elevated prices for virgin aluminum while accessing competitively priced scrap from international sources.

The tariff structure's impact on scrap markets proved multifaceted. Elevated finished product prices supported domestic aluminum demand by making US-produced goods more competitive versus imports, indirectly benefiting scrap consumption. Simultaneously, the exemption for scrap materials encouraged imports that might otherwise have remained abroad, increasing supply availability while creating competitive pressure for domestic scrap generators. The net effect maintained price stability around the $1.20-$1.25 per pound level, as these opposing forces largely balanced.

China announced tariff reductions on certain nonferrous scrap imports during 2025, cutting rates to encourage recycling and reduce dependence on primary production. While these policy changes primarily affected Asian trade patterns, they created incremental demand for US scrap exports that might flow through third-country intermediaries. The complex web of tariffs, counter-tariffs, and exemptions created arbitrage opportunities for sophisticated traders while complicating planning for traditional industrial consumers.

The September fire at Novelis' Oswego plant in New York created supply disruptions for automotive aluminum sheet, a key application consuming substantial scrap feedstock. This facility served as a critical supplier to vehicle manufacturers, and its reduced output created ripple effects throughout the aluminum supply chain. While the direct impact on scrap demand proved modest given alternative supply sources, the incident highlighted vulnerability to single-point failures in concentrated manufacturing networks.

Broader economic conditions remained supportive of aluminum demand, with consumer spending showing resilience despite elevated interest rates. The Federal Reserve's gradual monetary easing provided tailwinds for construction and automotive sectors, though the pace of rate reductions remained measured. Lower financing costs should gradually stimulate aluminum-intensive applications, particularly construction projects with extended planning horizons. However, November's immediate market conditions reflected current demand levels rather than anticipated future improvements.

The near-term outlook through year-end 2025 and into early 2026 suggests continued price stability around current levels, with potential for modest upside as seasonal factors influence supply availability. Historical patterns indicate aluminum markets often tighten slightly during winter months as scrap generation slows while manufacturing demand persists. However, the 2025-2026 winter may prove less dramatic than typical seasonal swings given elevated import volumes that provide cushion against domestic supply fluctuations.

Automotive sector fundamentals provide the strongest long-term demand support, with electric vehicle production projected to accelerate throughout 2026 and beyond. The transition to EVs creates secular demand growth for aluminum regardless of cyclical economic conditions, as manufacturers increasingly adopt lightweight materials to offset heavy battery weights and extend driving ranges. This structural trend should support premium pricing for automotive-grade scrap materials capable of meeting stringent specifications for strength, corrosion resistance, and thermal performance.

The recycling crisis in beverage cans represents both risk and opportunity for scrap dealers. The 43% recycling rate achieved in 2023 left over 61 billion cans landfilled, representing approximately $1.28 billion in lost material value. Efforts to improve collection infrastructure could gradually increase domestic scrap availability, though such improvements require significant capital investment and typically advance slowly. State-level bottle bill legislation and extended producer responsibility programs may create policy momentum, though implementation timelines remain uncertain.

Southeast Asia's emergence as a potential aluminum scrap processing hub deserves monitoring, as nations in the region seek to capture value-added activities rather than serving purely as raw material suppliers. Countries including Malaysia, Thailand, and Vietnam have invested in secondary smelting capacity, creating demand for scrap imports while potentially competing with US processors for certain export markets. This regional development could reshape global trade flows over coming years, though immediate impacts on US markets remain modest.

Trade policy evolution remains the largest source of uncertainty for aluminum markets. The 50% tariff regime faces potential modification under changing political leadership, though bipartisan support for domestic industry protection suggests major reversals appear unlikely. More probable scenarios include targeted adjustments to address unintended consequences or negotiated exemptions for specific trading partners. The differential treatment of scrap versus finished products may come under scrutiny if import surges threaten domestic scrap generators' viability.

For US aluminum scrap processors and recycling operations, success in 2026 will require strategic positioning around high-value applications while maintaining operational flexibility to adapt to policy changes. Automotive and aerospace applications offer premium pricing for quality material, justifying investment in advanced sorting and contamination control systems. Construction and packaging applications provide volume outlets for lower-grade material, ensuring diversified revenue streams that reduce dependence on any single market segment.

The industry's long-term trajectory remains favorable given aluminum's critical role in decarbonization efforts. Electric vehicles, renewable energy systems, and energy-efficient buildings all require substantial aluminum content, creating secular demand growth that should support recycling operations regardless of cyclical economic fluctuations. The 95% energy savings from recycling versus primary production creates compelling economics that ensure secondary aluminum's competitiveness even as electricity costs rise.

Key variables to monitor include automotive production schedules, primary aluminum pricing trends, trade policy developments, and recycling infrastructure improvements. The remarkable stability observed in November 2025 may persist if these factors remain balanced, or give way to directional trends if fundamental drivers strengthen or weaken meaningfully. November's strong and steady market conditions provided breathing room for operators to optimize operations and prepare for anticipated demand growth, with success dependent on maintaining quality standards while preserving cost competitiveness in an increasingly complex global marketplace.