August 2026 numbers just came in, and the aluminium scrap price trend has a story worth unpacking. China’s scrap is priced at USD 2,635.34/MT on an FOB basis. India’s sitting at USD 2,726.12/MT, CIF. A gap of roughly USD 90.78 per ton between the two markets.
Aluminium scrap isn’t some niche commodity nobody cares about. It feeds directly into secondary aluminium production, which keeps costs down across automotive parts, packaging, construction extrusions, you name it. When scrap prices shift, smelters and fabricators feel it almost right away.
Current Aluminium Scrap Prices: China vs India
Product | Region | Incoterm Basis | Price | Last Updated |
|---|---|---|---|---|
Aluminium Scrap | China | FOB | USD 2,635.34/MT | August 2026 |
Aluminium Scrap | India | CIF | USD 2,726.12/MT | August 2026 |
That spread, USD 90.78/MT, isn’t exactly small for a commodity where margins run thin to begin with. Multiply that across a sizable procurement volume and you’re looking at real money.
A quick breakdown of why these two prices aren’t directly comparable:
China’s FOB figure covers cost up to loading at the port of origin. Freight and insurance aren’t included.
India’s CIF price bundles in freight and insurance on top of the base cost, which naturally lifts the number.
Both reflect August 2026 conditions only. Scrap pricing can swing week to week depending on collection volumes and export flows.
Different incoterms, different cost baskets. Part of that USD 90.78 gap is just structural. Still a fair benchmark though, especially for anyone trying to gauge regional cost pressure.
What’s Pushing Aluminium Scrap Prices Right Now
Scrap pricing doesn’t move for one reason. Usually it’s several things stacking on top of each other.
Primary aluminium prices. Scrap tends to track primary metal fairly closely. When LME aluminium climbs, scrap follows, because recyclers won’t sell below what the metal’s actually worth once refined.
Collection and supply volumes. China runs one of the largest scrap collection networks in the world, feeding its own secondary smelters constantly. India still depends on a chunk of imported scrap to meet domestic demand, and that import reliance shows up directly in its landed price.
Export restrictions. Some countries have tightened scrap export policy over the years to protect domestic recycling capacity. Fewer tons available for export means tighter supply for buyers elsewhere, and prices respond accordingly.
Freight costs. Container rates, bunker fuel, port delays. All of it lands in the CIF number for importing countries. A freight spike alone can widen the China-India gap without touching underlying scrap costs at all.
Currency movements. Scrap trades in dollars globally. A weaker rupee against the dollar pushes India’s delivered cost higher even if the dollar price stayed flat.
Quick Questions Buyers Keep Asking
Before going further, a few things that come up constantly when people start digging into this data.
Does FOB vs CIF actually matter that much? Yes, more than people assume. FOB only covers costs to the port of loading. CIF adds freight and insurance all the way to destination. Comparing them directly without adjusting for that gap gives a skewed picture.
Is China’s scrap really cheaper, or just differently priced? Both, kind of. China’s lower FOB number partly reflects its massive domestic collection base. Less dependence on imports, more supply available locally, lower base cost.
Should Indian buyers expect this gap to close? Not likely in the short term. India’s import dependency is structural, not a temporary blip. Closing that gap would require meaningful domestic recycling capacity growth, and that takes years, not months.
What This Means for Procurement Teams and Investors
If you’re sourcing aluminium scrap or advising someone who does, this isn’t just background noise.
China’s lower FOB price looks appealing at first. But buyers still need to factor in freight to their own port, lead times, and whether the supplier can actually deliver consistent volume. Landed cost tells a different story than the headline number.
India’s higher CIF price points toward an opportunity for domestic players. More recycling capacity, less import dependence, lower long-term costs. A few Indian secondary smelters have already been expanding processing capacity with exactly this gap in mind.
For anyone advising clients in automotive, packaging, or construction materials, treat aluminium scrap pricing as a leading indicator. Finished aluminium product costs usually follow scrap trends within a month or two.
Looking Ahead for Aluminium Scrap Prices
Where does this go from here? Hard to say with total certainty, but a few things seem likely.
The China-India spread probably holds steady through the rest of 2026 unless something disrupts collection volumes or export policy shifts meaningfully. Freight costs remain the biggest wildcard, since shipping markets have been volatile lately.
Buyers locking in long-term contracts should check current pricing before signing anything. August 2026 figures are a snapshot, not a promise of where things sit next quarter.
Conclusion
The aluminium scrap price trend for August 2026 shows China at USD 2,635.34/MT FOB and India at USD 2,726.12/MT CIF. That USD 90.78 gap comes down to incoterm structure, import dependency, and freight costs stacking together. For procurement teams, investors, and advisers tracking metal recycling markets, this data matters now more than it did a year ago, given how tight scrap supply has gotten globally.
FAQ Section
What is the current aluminium scrap price trend in China and India?
China’s aluminium scrap price stands at USD 2,635.34/MT FOB as of August 2026, while India’s runs USD 2,726.12/MT CIF. The difference stems from incoterm basis, freight and insurance costs, and each country’s reliance on imported scrap versus domestic collection.
Why is aluminium scrap more expensive in India?
India’s price includes freight and insurance since it’s quoted CIF. China’s FOB figure doesn’t carry those costs. India also imports a larger portion of its scrap supply, and domestic recycling capacity hasn’t caught up with demand yet, which keeps landed costs elevated.
What factors drive aluminium scrap prices?
Primary aluminium pricing sets the baseline, since scrap tracks it closely. Collection volumes, export restrictions, freight rates, and currency swings all factor in too. Scrap recyclers price against refined metal value, so when primary aluminium moves, scrap usually follows within days.
How volatile is aluminium scrap pricing compared to other metals?
Fairly volatile, honestly. Scrap depends on collection flows, export policy, and freight availability, all of which shift fast. Prices can move meaningfully within a single week. Buyers negotiating contracts should always pull fresh pricing rather than relying on figures more than a few weeks old.
What’s the outlook for aluminium scrap prices through the rest of 2026?
The China-India price gap looks likely to persist, driven by structural differences in collection capacity and import dependency. Freight costs remain the biggest variable. Barring major policy shifts or supply disruptions, expect the spread to hold roughly where it stands now.
