Aluminum is the second most recycled metal in the world after steel, and scrap aluminum prices are influenced by a unique set of factors that distinguish it from ferrous markets. Whether you are operating a materials recovery facility, purchasing feedstock for a secondary smelter, or building pricing software, understanding the aluminum scrap pricing landscape is essential.
Grade-Level Pricing
Aluminum scrap is not a single commodity. The price you receive or pay depends heavily on the alloy, form, and cleanliness of the material.
Used Beverage Cans (UBC), classified under ISRI code TALC, are the most commonly recycled aluminum product. The established collection infrastructure and high demand from can sheet producers make UBC one of the most liquid scrap grades. Prices track closely with LME aluminum but typically trade at a discount reflecting processing costs.
Extrusion scrap, particularly 6063 alloy (ISRI code TATA), comes from window frames, door frames, and architectural profiles. Clean extrusion scrap is highly valued because it can be remelted and extruded again with minimal alloy adjustment. It commands a premium over mixed aluminum scrap.
Cast aluminum (ISRI code TRUMP) includes engine blocks, transmission housings, and other die-cast parts. The silicon content in casting alloys limits their reuse, so cast scrap typically trades at the lowest price among clean aluminum grades.
Aluminum sheet scrap from manufacturing cutoffs and stamping waste is valued between extrusion and cast, depending on the specific alloy and cleanliness.
What Drives Aluminum Scrap Prices
The LME aluminum contract is the global benchmark. All aluminum scrap pricing ultimately references the LME three-month price, with grade-specific premiums or discounts applied. When LME aluminum rises, all scrap grades follow.
The Midwest Premium, a US-specific charge added on top of the LME price to account for shipping, warehousing, and regional supply-demand dynamics, adds another layer. This premium has been volatile in recent years, swinging from $0.05 to over $0.40 per pound.
Energy costs matter more for aluminum than for other metals. Primary aluminum smelting is extremely energy-intensive, so electricity prices influence the cost floor. When energy costs rise, primary production becomes more expensive, making recycled aluminum more economically attractive and pushing scrap prices up.
Tracking Aluminum Scrap Prices
For developers building applications that need aluminum scrap pricing, the ScrapMetal API provides current prices across all four tracked aluminum grades. Query the /v1/prices/current endpoint with a metal=aluminum filter to get UBC, extrusion, cast, and sheet prices in a single response. Historical data is available on paid plans for trend analysis and forecasting.