Trading activity in Southeast Asia’s scrap aluminum and recycled aluminum alloy markets has weakened in recent weeks, as rising aluminum prices and a series of natural disasters disrupted supply chains across the region. According to SMM analysis, Thailand and Malaysia—two of the region’s most active recycling hubs—saw notable declines in both scrap purchases and alloy output.
Rising LME Prices Trigger Regional Slowdown
LME aluminum began climbing sharply in October 2025, rising from $2,683.5/ton on Oct. 1 to $2,885/ton by month-end. Prices then fluctuated between $2,840–$2,875/ton through most of November before slipping to $2,749.5/ton at month-end.
While Southeast Asian scrap prices are not directly pegged to LME movements, they closely track global sentiment. Throughout October and November, scrap aluminum prices in Thailand and Malaysia moved higher in tandem with the LME rally.
Scrap Prices Continue Upward Trend
SMM survey data shows:
- Malaysia Tense (mixed castings): rose from $2,197.5/ton at late October to $2,245/ton, before easing to $2,225/ton by late November.
- Malaysia Talon (aluminum wire & cable): increased from RM10,400/ton to RM11,900/ton, then corrected to RM11,250/ton.
- Malaysia UBC (used beverage cans): climbed from RM7,500/ton to RM8,350/ton by end-November.
- Thailand UBC: moved up from 61,000 THB/ton in early October to 63,625 THB/ton, before slightly adjusting to 63,250 THB/ton.
Recycled Alloy Prices Follow the Same Pattern
Prices for recycled aluminum alloy ingots also strengthened across the region. In Thailand, ADC12 rose steadily from 82 baht/kg in early October to 83 baht/kg, and eventually to 84.5 baht/kg by late November.
However, the rising cost of scrap is squeezing margins for alloy producers. Higher feedstock prices have pushed up production costs for ADC12 and other recycled alloys, prompting downstream buyers—particularly automotive manufacturers in Thailand and Malaysia—to scale back purchases.
Producers Face Sales Pressure, Production Cuts
With downstream demand cooling and inventories rising, some ADC12 producers have been forced to cut output or temporarily halt operations. SMM analysts note that unless scrap prices stabilize or demand from the automotive sector improves, pressure on recycled alloy producers could persist into early 2026.
