Aluminium Scrap Manufacturing Plant Project Report 2026: Cost Analysis, ROI, and Feasibility Insights

Aluminium scrap is not produced directly from ore. Primary aluminium is first produced from bauxite by refining it into alumina and then using electrolysis. Aluminium products are then collected after use or from manufacturing waste. The scrap is sorted by alloy and grade, separated from contaminants, shredded or cut when required, and processed through melting, refining, and casting when it is converted into secondary aluminium ingots. The recycled metal can then be used to manufacture new aluminium products.

The main feedstock is aluminium scrap generated from manufacturing waste, used products, construction materials, packaging, vehicles, and other sources. Scrap purchase costs generally account for around 70–85% of the total production cost, depending on scrap grade, quality, contamination, and market prices. Higher-grade and cleaner scrap usually commands a higher price.