In 2026, aluminium scrap prices in Australia continue to be supported by strong global demand, ongoing infrastructure development, energy-transition projects, and the growing importance of recycled metals in manufacturing. However, not all aluminium grades are valued equally. Clean aluminium extrusions and alloy wheels typically command significantly higher prices than mixed household aluminium or contaminated scrap.
Understanding the different aluminium grades and how buyers assess material quality can make a substantial difference to your final payout. This guide explains current aluminium scrap values, outlines the main aluminium categories, and highlights practical ways to maximise returns when selling to Australian scrap metal buyers and recyclers.
Current Scrap Aluminium Prices in Australia (2026)
Aluminium scrap prices in Australia vary depending on the grade, cleanliness, and processing requirements of the material. Clean, high-grade aluminium typically attracts stronger pricing, while mixed or contaminated aluminium receives lower rates due to additional sorting and recovery costs.
Average Aluminium Scrap Rates Per Kg
| Aluminium Type | Typical Price (AUD/kg) |
|---|---|
| Aluminium Extrusions (Clean) | $2.50 – $3.50 |
| Cast Aluminium | $1.50 – $3.15 |
| Aluminium Wheels (Mags) | $2.50 – $3.50 |
| Domestic/Mixed Aluminium | $0.80 – $1.80 |
| Aluminium Cans | $0.80 – $2.20 |
| Foil & Light Gauge Aluminium | $0.20 – $0.80 |
1. Aluminium Extrusions (Highest Demand)
Aluminium extrusions are generally the most valuable and in-demand aluminium scrap category in Australia. They are commonly recovered from the construction, manufacturing, and industrial sectors, where large quantities of high-quality aluminium are used in structural applications.
Typical sources include window frames, door frames, construction profiles, and industrial extrusion products. Because these materials are manufactured to consistent specifications and contain a high percentage of aluminium, they are highly attractive to recyclers.
The reason extrusions command higher prices is their high purity, ease of processing, and strong demand from both domestic recyclers and export markets. Compared with mixed aluminium, they require less sorting and deliver higher recovery efficiency during recycling.
Typical value: $2.50–$3.50 per kg
Clean extrusions that are free from steel fittings, rubber seals, plastic inserts, paint, and other contaminants typically achieve the highest market prices.
Cast Aluminium
Cast aluminium is commonly recovered from automotive and industrial equipment where parts are manufactured by pouring molten aluminium into moulds. It is widely used in engine components, gearboxes, pump housings, and various machinery parts.
This category generally pays less than clean extrusions because cast aluminium contains a wider mix of alloys, which reduces its overall purity. As a result, recyclers need to perform additional processing and sorting before it can be reused in manufacturing, which impacts its market value.
Typical value: $1.50–$3.15 per kg
Domestic Aluminium
Domestic aluminium comes from household items and general consumer products that contain aluminium but are not manufactured to industrial purity standards. It is commonly found in outdoor furniture, kitchen items, and mixed household aluminium products.
This category typically pays less because the material quality is lower and often includes contamination from paint, plastic, steel fixings, or mixed alloys. These impurities increase processing requirements and reduce recycling efficiency, which directly impacts the price offered by scrap buyers.
Typical value: $0.80–$1.80 per kg
Clean separation and removal of non-aluminium attachments can improve pricing, but domestic aluminium will generally remain below industrial-grade materials due to its inconsistent composition.
Aluminium Foil & Light Scrap
Aluminium foil and light-gauge scrap refer to thin aluminium materials commonly found in packaging and disposable consumer products. These include foil trays, food packaging, and other lightweight aluminium items used in everyday applications.
This category generally pays the least in the aluminium scrap market because of its extremely low density and high contamination risk. Recyclers must process large volumes to recover a small amount of usable aluminium, which increases handling and transport costs relative to the metal yield.
Typical value: $0.20–$0.80 per kg
In many cases, this material is also contaminated with food residue, plastics, or coatings, further reducing efficiency in recycling operations. As a result, aluminium foil scrap sits at the lowest end of the pricing spectrum compared to other aluminium grades.
Why Aluminium Scrap Prices Are Rising in 2026
Aluminium scrap prices in 2026 are being supported by a combination of global supply constraints, rising industrial demand, and strong export markets. These factors are tightening availability while increasing competition for recycled aluminium feedstock.
Global Supply Constraints
Aluminium markets have experienced sustained upward pressure due to supply disruptions, reduced inventory levels, and consistently strong industrial consumption. In 2026, aluminium prices have reached multi-year highs, with the London Metal Exchange benchmark trading above USD $3,500 per tonne, reflecting tighter global supply conditions compared to previous years.
Production challenges, energy costs, and limited expansion in primary aluminium smelting capacity have all contributed to increased reliance on recycled aluminium sources, strengthening scrap market demand.
Growing Demand from EVs and Infrastructure
A major driver of aluminium demand is the rapid expansion of key growth sectors. Aluminium is widely used in electric vehicles due to its lightweight properties, which improve battery efficiency and vehicle range. It is also heavily utilised in solar energy systems, construction materials, and packaging industries.
As infrastructure development and electrification projects accelerate globally, demand for both primary and recycled aluminium continues to rise, supporting stronger scrap pricing across multiple aluminium grades.
Domestic vs Export Demand: Which Pays Better?
Aluminium scrap pricing in Australia is strongly influenced by whether material is sold into domestic recycling markets or export-driven supply chains. Each channel offers different advantages depending on volume, material quality, and seller type.
Domestic Buyers
Domestic scrap buyers operate within Australia and typically handle local recycling, reprocessing, and redistribution of aluminium materials. This channel is more accessible and commonly used by small-scale sellers.
Domestic buyers offer faster payment cycles, often paying on delivery or shortly after weighbridge verification. Logistics are also simpler, as transport distances are shorter and requirements are less complex. This makes domestic sales more practical for smaller loads or irregular supply.
This option is best suited to homeowners, tradies, and small businesses that generate limited or inconsistent aluminium scrap volumes.
Export-Oriented Demand
Export buyers aggregate large volumes of aluminium scrap for shipment to overseas markets, particularly Asia. Because they operate at scale and compete in global commodity markets, they often achieve stronger pricing for clean, well-sorted aluminium.
This channel is generally more suitable for bulk suppliers, industrial operations, and commercial recyclers. However, it may involve stricter grading requirements, larger minimum quantities, and more structured logistics compared to domestic sales.
Export-Focused Buyers
Export-focused scrap buyers in Australia operate by aggregating large volumes of aluminium scrap and supplying it to international smelters and recycling facilities, particularly across Asia. Because they participate directly in global commodity supply chains, they are often able to offer stronger pricing for suitable material compared to purely domestic channels.
These buyers typically provide better pricing for bulk volumes, especially when aluminium is clean, well-sorted, and free from contamination. They also benefit from higher competition at the export level, which can improve rates for sellers when global demand is strong.
This selling channel is most suitable for manufacturers, demolition contractors, and industrial scrap generators who can consistently supply large quantities of aluminium scrap that meet export-grade specifications.
Key Market Insight
Large export markets play a significant role in shaping Australian aluminium pricing. When global supply tightens or industrial demand increases particularly in Asia export buyers compete more aggressively for scrap metal. This competition often creates upward pressure on local aluminium scrap prices, especially for clean and high-grade material streams.
What Drives Aluminium Scrap Prices in Australia?
Aluminium scrap prices in Australia are shaped by global market forces, currency fluctuations, and material quality. Because aluminium is traded internationally, local scrap values closely follow global pricing trends rather than purely domestic demand conditions.
AUD/USD Exchange Rate
The Australian dollar plays a major role in determining scrap metal returns because aluminium is priced in US dollars on global commodity markets.
When the AUD weakens, scrap prices in Australia often rise because exporters become more competitive internationally, increasing demand for Australian aluminium scrap.
When the AUD strengthens, local scrap returns may soften as Australian exports become more expensive for overseas buyers, reducing demand pressure.
Recyclers continuously adjust pricing to reflect currency movements and maintain alignment with global trade competitiveness.
Global Aluminium Prices
International aluminium pricing, particularly the London Metal Exchange (LME) benchmark, is one of the strongest drivers of scrap value in Australia. When global aluminium prices increase, scrap aluminium prices generally rise due to stronger demand from smelters and manufacturers.
Market forecasts suggest aluminium prices may remain elevated through much of 2026, supported by infrastructure growth, electrification trends, and ongoing constraints in primary aluminium production. These factors continue to support demand for recycled aluminium feedstock.
Metal Cleanliness
Material quality is one of the most important and controllable factors influencing scrap value. Clean aluminium consistently achieves higher prices because it requires less processing and delivers higher recovery efficiency for recyclers.
Contaminants such as paint, plastic, steel attachments, or mixed alloys reduce value due to increased sorting and processing costs. Clean, well-sorted aluminium typically achieves stronger pricing across both domestic and export markets.
FAQs
1. What is the current aluminium scrap price in Australia?
Most aluminium scrap in Australia currently trades between $0.80 and $3.50 per kg, depending on the grade, cleanliness, and market conditions. Clean aluminium extrusions typically sit at the higher end of the pricing range due to lower processing costs and stronger demand.
2. Which aluminium scrap is worth the most?
Clean aluminium extrusions and alloy wheels generally achieve the highest scrap value. These materials are denser, more uniform, and require minimal processing, making them more efficient for recyclers and more valuable per kilogram compared to mixed or contaminated aluminium.
3. Why are aluminium prices increasing in 2026?
Aluminium prices in 2026 are being supported by strong demand from electric vehicles, infrastructure development, and renewable energy projects. At the same time, supply constraints and elevated global aluminium benchmarks are contributing to higher scrap values across Australia.
4. Does aluminium foil have scrap value?
Yes, aluminium foil does have scrap value, but it is one of the lowest-paying aluminium grades. Its low weight, high contamination risk, and processing inefficiency result in significantly lower returns compared to other aluminium types.
5. Is it better to sell aluminium locally or through export buyers?
Local buyers are usually more suitable for small-scale sellers due to convenience and faster payment. Export-focused buyers often offer stronger pricing for bulk, clean aluminium loads because they operate at larger scale and have direct access to international markets.
Conclusion
The scrap aluminium price in Australia (2026) remains strong overall, with clear differences based on grade and material quality. Clean aluminium extrusions, alloy wheels, and cast aluminium consistently achieve higher returns, while mixed aluminium and lightweight materials such as foil sit at the lower end of the pricing spectrum.
While domestic aluminium often trades under $2/kg, premium-grade aluminium can exceed $3/kg in many Australian scrap markets, particularly when clean and well-sorted.
Ultimately, aluminium scrap value is shaped by a combination of grade purity, contamination levels, export demand, global aluminium pricing trends, and the AUD/USD exchange rate. Sellers who focus on sorting materials properly and selling through competitive buyers or platforms are best positioned to maximise returns in 2026.