ALUMINUM SCRAP

2026 is the year when “Aluminum” becomes the strategic metal the whole world is fighting for! From the USA–Iran war erupting in the Middle East, to the closure of the Strait of Hormuz and production halts in Qatar and Bahrain, the ripple effects have spread worldwide: prices skyrocketing, LME stocks plunging to their lowest in 20 years, and Japan’s MJP premium surging past $250/ton.

Thailand’s aluminum scrap market is entering an exciting new era. What was once considered “waste” has now become a strategic resource powering sustainability, circular economy models, and global technology industries. In particular, UBC (Used Beverage Can) scrap is emerging as a cornerstone of the circular economy, enabling closed-loop recycling and reducing carbon footprints. By 2026, Thailand is set to strengthen its role as a regional hub for aluminum recycling, transforming scrap from a low-value byproduct into “White Gold” for both domestic and international markets.

UBC Scrap: The Green Gold of the Future From waste cans to strategic resource—UBC (Used Beverage Cans) are now powering the global circular economy. With over 99% purity and 95% less energy use than virgin aluminum, UBC is the key to low-carbon manufacturing.

Thailand presents significant aluminum scrap opportunities due to its role as a major ASEAN processing hub, high import volumes (especially from the US), strong local manufacturing demand (automotive, electronics), and a growing focus on recycling for sustainability, with potential for suppliers in UBCs, wheels, and industrial scrap, though regulations are tightening. Key opportunities lie in supplying raw scrap to domestic smelters for ADC12 alloy production, catering to the automotive sector, and leveraging Thailand's strategic location for regional trade, but expect strict quality control and compliance. Key Opportunities Processing Hub: Thailand is a leading scrap processing center in ASEAN, transforming scrap into valuable alloys like ADC12 for industries. High Demand: Significant import volumes indicate massive local consumption, especially from the US, driven by manufacturing. Industry Focus: Strong demand from automotive, electronics, and construction sectors for recycled aluminum. Strategic Location: Ideal for refining and re-exporting, serving as a hub replacing China's role in US scrap trade. Recycling Growth: Government support and consumer interest in recycling create a robust supply chain for materials like aluminum cans (UBCs). Types of Scrap in Demand UBCs (Used Beverage Cans): High demand for clean, sorted UBC scrap. Auto Parts: Wheels, extrusions, and other aluminum components from the thriving auto industry. Industrial Scrap: Extrusion scrap, sheet scrap, and general factory offcuts.