BIR World Mirror on Non-Ferrous Metals – Quarterly Report (July 2026): Global Recycling Industry Faces Ongoing Market and Trade Challenges

The latest BIR World Mirror on Non-Ferrous Metals – Quarterly Report (July 2026) highlights the continued challenges facing the global recycling industry as market volatility, trade disruptions, and regulatory changes create an increasingly complex operating environment. While many markets are approaching the traditional summer slowdown, recyclers continue to navigate fluctuating prices, supply chain pressures, and shifting government policies.

One of the most significant concerns remains the volatility of the London Metal Exchange (LME), which continues to influence pricing and trading decisions across the non-ferrous metals sector. Combined with ongoing logistical and regulatory issues, recyclers in many regions are being forced to adapt to rapidly changing market conditions.

Cross-Border Trade Creates Challenges in Mexico

Scrap recyclers in Mexico are experiencing growing difficulties at the US border, where shipments that have traditionally been classified as scrap are increasingly being scrutinised as potentially reusable goods. This additional inspection is causing delays, creating uncertainty for exporters, and placing additional strain on businesses through higher working capital requirements.

Malaysian Port Delays Continue to Affect Trade

In Malaysia, port congestion and customs procedures remain a major concern, although there are signs that conditions are gradually improving. Containers that had been delayed for extended periods are now moving through inspection processes, with many being released, cleared, or re-exported.

Despite this progress, recyclers continue to express concern over the lack of transparent customs guidance regarding the criteria used to reject shipments or require their re-export, making future planning difficult.

Ukrainian Export Ban Impacts Recycling Sector

Government policy continues to influence recycling activity in Ukraine following the introduction of a scrap metal export ban earlier this year. Industry representatives report that the restrictions have reduced domestic scrap collection volumes and forced several collection facilities to suspend operations.

To help restore market activity and generate foreign currency income, recyclers are urging authorities to replace the export ban with a quota allowing up to 200,000 tonnes of scrap exports to the European Union.

Extreme Heat Reduces Scrap Collection Across Europe

Record temperatures across much of Europe have also disrupted recycling operations. With temperatures exceeding 40°C in some regions, working conditions have become increasingly difficult for collection and processing teams.

The severe heat has also affected transport and logistics, contributing to lower scrap collection volumes and reducing the flow of material into recycling facilities.

Competition for Scrap Tightens Margins in Nordic Markets

Recyclers across the Nordic region report intense competition for available non-ferrous scrap, leading to aggressive purchasing activity for certain grades of material. Although demand remains relatively stable, higher buying prices are squeezing profit margins.

Many companies continue to avoid holding large inventories, preferring to minimise exposure while uncertainty over future metal prices persists.

UK Market Prepares for Digital Waste Documentation

In the United Kingdom, non-ferrous metal prices have softened in recent weeks. Industry participants attribute part of the decline to easing geopolitical tensions in the Middle East, which have reduced the risk premium previously reflected in commodity markets.

The UK recycling sector is also preparing for the introduction of mandatory digital waste transfer notes, a measure designed to improve traceability, reduce administrative paperwork, and modernise waste management documentation across the industry.

US Aluminium Prices Decline While Copper Demand Remains Strong

The US market experienced a significant decline in aluminium prices during June, with the all-in aluminium price falling by more than 15%. The decrease was largely driven by weaker LME prices alongside a gradual reduction in regional aluminium premiums.

Despite this, secondary aluminium ingot prices have remained relatively firm due to continued increases in raw material and freight costs. Demand for copper and brass has also remained healthy, supporting activity across domestic recycling markets.

China Balances Growth with Market Volatility

China's non-ferrous scrap industry continues to balance ambitious long-term government objectives to increase recycled metal production with shorter-term economic and logistical challenges.

Market participants are also managing significant price volatility across major non-ferrous scrap commodities while responding to broader global economic uncertainty and supply chain constraints.

Outlook

The July 2026 edition of the BIR World Mirror on Non-Ferrous Metals illustrates an industry facing multiple pressures at once. From trade restrictions and customs uncertainty to extreme weather, fluctuating commodity prices, and changing regulations, recyclers across the world continue to adapt to an evolving marketplace.

Although demand for recycled non-ferrous metals remains broadly resilient, businesses are entering the summer period with caution as they navigate ongoing market uncertainty and seek greater stability in global trade conditions.

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