German aluminium industry under strain

The German aluminium industry is not regaining its upward momentum at the beginning of 2026, Aluminium Deutschland has reported. Production data for the first quarter shows that key segments remain below the previous year’s level. The declines are particularly pronounced among remelters and manufacturers of extruded products. This continues the weak trend of recent years.

Aluminium Deutschland president, Rob van Gils, commented: “The current figures show that the aluminium industry continues to operate in a challenging economic and structural environment. Isolated positive developments do not change the fact that key segments are under pressure. Without a noticeable improvement in the business environment, the situation will not improve sustainably.”

In the first quarter of 2026, 684,564 metric tons of recycled aluminium were produced in Germany. This corresponds to a decline of approximately 3% compared to the previous year. The production of semi-finished aluminium products also fell slightly by 1% to 568,688 metric tons. A recovery is therefore not apparent at the start of the year.

The recycling sector is showing mixed results, but overall, it is characterised by declines. Refiners were able to slightly increase their production to 128,639 tons, a rise of 2%. Remelters, on the other hand, recorded a decline of 4% to 555,925 tons. They are thus the main driver of the weak overall performance in the recycling segment.

This development is further hampered by tight raw material markets. 85% of companies report a shortage of aluminium scrap. This is a key problem for the recycling industry, as scrap is an essential basis for resource-efficient and competitive aluminium production.

The development in the semi-finished products sector also remains subdued. Production of rolled products fell slightly by 1% to 452,894 tons. Extruded products performed significantly worse, with 115,794 tons, a decline of 4%. This segment remains particularly affected by weak demand from key customer sectors such as the construction and automotive industries.

The production data is confirmed by recent survey results. 66% of companies rate their order situation as poor or very poor. 71% rate their capacity utilisation as low. The outlook for the remainder of the year remains subdued, as 57% of companies do not expect any improvement by the end of 2026.

Added to this is the fundamental question of location. 76% of companies consider it rather unlikely or impossible to achieve climate neutrality by 2045 while simultaneously maintaining industrial production in Germany. The industry thus sees not only a cyclical weakness but also structural risks for production, employment and transformation.

Companies are reacting to the ongoing crisis with cost-cutting programmes, capacity adjustments and location decisions. These include job cuts, capacity reductions, production closures and relocations abroad.

This development increases the risk of industrial value creation permanently migrating away from Germany. When production capacities are closed or relocated, not only are jobs lost, but also know-how, investments, and parts of industrial value chains.

According to Aluminium Deutschland, the industry needs better framework conditions to secure production, employment and transformation in Germany. Crucial factors are competitive energy prices, reduced bureaucracy, improved scrap availability and planning certainty to secure production and investment in Germany in the long term.

Aluminium Deutschland managing director, Angelika El-Noshokaty, said: “The situation of the aluminium industry shows that this is not about a short-term weakness of individual segments, but about the industrial substance of Germany as a business location. High costs, weak demand, scarce raw materials and increasing regulation are all simultaneously burdening companies. To maintain production and employment in Germany, the industry needs reliable, competitive and investment-friendly framework conditions.”