Increased recycling to restrain aluminium smelter expansions, Barclays says

Primary aluminium smelter expansions will need to be very well-positioned on the cost curve and linked to low or zero-carbon power in order to get the green light as the industry pushes to decarbonize, according to a report by Barclays.

Recycled aluminium scrap offers a more than 90% carbon-dioxide-per-tonne-of-aluminium saving versus primary metal, Barclays said, which will in turn accelerate the development of circular supply chains going forward.
Aluminium scrap is generated through two routes: via casting and manufacturing through the supply chain, known as process scrap; and via recycling end-of-life products, known as post-consumer scrap (PCS). Almost all process scrap is already collected and processed, while PCS recycling rates are relatively low.

But with aluminium producers looking to meet net-zero carbon emissions targets, the pressure to use more scrap instead of primary production is set...


Andrea Hotter

December 08, 2021

22:31 GMT

New York