Aluminium Deutschland records further decline in production across the German aluminium industry, with 57% of companies doubting that circumstances will improve by the end of 2026.
Reportedly, 684,564 metric tons of recycled aluminium were produced in Germany in the first quarter of 2026 – but this marks a decline of approximately 3% compared to last year.
Raw material access is an ongoing issue, as 85% of companies have reported a shortage of aluminium scrap.
Refiners were able to increase their production rate by 2% and achieve a total of 128,639 metric tons. However, remelters recorded a 4% decline to 555,925 metric tons – making them the ‘main driver’ of the sector’s weak performance overall.
Weak demand from key customer sectors has impacted the semi-finished product sector, with the production of semi-finished aluminium said to have decreased by 1% to 567,688 metric tons. Rolled products have fallen by 1% to 452,894 tons, while extruded products are 4% lower at 115,794 tons.
Aluminium Deutschland does not expect the semi-finished product sector to recover at the beginning of the year.
Surveys have shed light on the situation, with 66% of companies rating their order situation as poor or very poor. 71% describe their capacity utilization as low, and 57% do not expect improvement by the end of 2026.
Additionally, 76% of companies consider it unlikely or impossible to achieve climate neutrality by 2045 without maintaining industrial production in Germany.
Companies have undertaken cost-cutting programmes and capacity adjustments in an effort to resolve the issue – most commonly job cuts, but also capacity reductions and production closures. Some have decided to relocate abroad, leading to fears that industrial value will permanently migrate away from Germany.
Aluminium Deutschland asserts that the industry needs better framework conditions to secure production, employment, and transformation in Germany. Competitive energy prices, improved scrap availability, and planning certainty are considered to be crucial in securing production and investment in the long term.
“The current figures show that the aluminium industry continues to operate in a challenging economic and structural environment,” says vice president Rob van Gils. “Individual positive developments do not change the fact that key segments are under pressure. Without a noticeable improvement in the location conditions, the situation will not improve sustainably.”
“The situation in the aluminium industry shows that this is not a short-term weakness of individual segments, but rather a question of the industrial core of Germany as a business location,” adds managing director Angelika El-Noshokaty.
“High costs, weak demand, scarce raw materials, and increasing regulation are all putting a strain on companies simultaneously. To maintain production and employment in Germany, the industry needs reliable, competitive, and investment-friendly framework conditions.”
Aluminium Deutschland previously spoke out about US President Donald Trump’s 25% tariff on aluminium imports, which did not include aluminium scrap. In their view, the development could have had ‘fatal consequences’ for the German and European markets.
In other news, the European Aluminium Foil Association and Flexible Packaging Europe have founded an alliance to drive recycling performance for small aluminium packaging. Nestlé Nespresso, JDE Peet’s, Lindt, and Bel Group are among its members.
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