The aluminum industry is undergoing significant transformations, moving to more sustainable practices. At the same time, it is navigating international supply challenges due to the geopolitical climate.

2 reasons why recycled aluminum is a more sustainable option than new aluminum:

Recycling aluminum is remarkably energy-efficient, using up to 95% less energy than its primary production from bauxite.¹
It also substantially reduces environmental impact, minimizing CO₂ emissions to just 0.5 tons per ton of recycled aluminum compared to 16 tons for its primary counterpart.²

Let's dive into the current state of the industry and its trends with insights from our own experts, Paul Cloos (Aluminum Sales Lead) and Ainhoa Urgoiti López (Aluminum Account Manager).

In this blog article, you will learn about…

The shift to green aluminum in the packaging, consumables and automotive industries
The state of tracking the aluminum CO2 impact
Impact of the global geopolitical and economic factors on aluminum industry

The Shift to Green Aluminum

A notable trend across the board is the industry's shift towards greener practices.

This movement is especially noticeable in sectors such as consumables and automotive. In these industries, there is a growing emphasis on using post-consumer scrap to meet the requirements set forth by the European Green Deal.

The drive for sustainability is also propelled by the desire to meet consumer demands for more environmentally conscious products. This trend shows a significant move towards greener production and a smaller CO2 footprint.

Packaging & Consumables Industry

The packaging and consumables industry is moving towards adopting 100% recycled aluminum products. This trend is particularly reflected in the use of aluminum scrap in products whose customers value sustainability, like aluminum cans and aerosol spray cans.

The sector's commitment to sustainability is leading to an increased emphasis on sourcing more recycled products, acknowledging the advantages these practices bring in the long term.

Automotive Industry

The automotive sector, particularly manufacturers of electric vehicles, is increasingly adopting recycled aluminum to enhance the environmental credentials of their products.

This trend has gained significant momentum over the last two years, underscoring a major industry-wide shift towards eco-friendly materials.

Tracking the CO₂ Impact

Even with the move towards greener practices, the industry still struggles. It takes a lot of work to keep track of recycled materials and emissions certifications.

Why? Because there's still no standard tracking system in place, which makes verifying and certifying products made of recycled materials difficult.

Impact of Global Geopolitical and Economic Environment

Global pandemic, wars, climate-induced extreme weather conditions, and energy crises have profoundly impacted the aluminum market.

The closure of the canal has led to a rise in transportation costs, making operations significantly more challenging than before.

- Paul Cloos

The closure of critical trade routes, such as Suez and Panama canals, and the disruption of international trade have led to increased prices and volatility. This has led to the limitation in trade routes, making transportation significantly more complicated, expensive, and less sustainable.

Addressing The Challenges

Recent disruptions in traditional shipping routes have tested our flexibility and creativity. These situations have made us even more determined and skilled at finding innovative solutions.

For example, we've successfully navigated the logistical hurdles of shipping materials from Asia to Europe through an alternative route, ensuring that both seller and buyer received high-quality service despite challenging conditions.

Looking Forward

We're excited about the move to greener aluminum and are here to help you find the best deals and shipping options. Do you have questions about our aluminum solutions? Our aluminum specialist, Paul, is ready to help. Book a call with him here: Schedule a Call

Works Cited

¹“Aluminium Recycling Factsheet.” International Aluminium Institute, October 2020, https://international-aluminium.org/resource/aluminium-recycling-fact-sheet/. Accessed 28 February 2024.

²“MAKING NET-ZERO ALUMINIUM POSSIBLE.” Mission Possible Partnership, April 2023, https://missionpossiblepartnership.org/wp-content/uploads/2023/04/Making-1.5-Aligned-Aluminium-possible.pdf. Accessed 28 February 2024.