German aluminium industry to remain under pressure in 2026
Industry association Aluminium Deutschland reported further decline in production across the German aluminium industry, with 57% of companies doubting that circumstances would improve by the end of 2026.
Aluminium Deutschland said the German aluminium industry failed to regain momentum at the beginning of 2026.
Production data for the first quarter shows that key segments remain below the previous year's levels.
The declines were particularly evident among remelters and manufacturers of extruded products.
Rob van Gils, President of Aluminium Deutschland, said: “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.”
Production
In the first quarter of 2026, 684,564 tons of recycled aluminium were produced in Germany.
This represents a decline of typically 3% compared to the previous year.
The production of semi-finished aluminium products also fell slightly by 1% to 568,688 tons. No recovery is apparent at the start of the year.
Recycling
The recycling sector was mixed but overall experienced declines.
Refiners were able to increase their production to 128,639 tons, a rise of 2%.
Remelters, on the other hand, recorded a decrease of 4% to 555,925 tons.
They were thus the main driver of the weak overall performance in the recycling segment.
The situation is further impacted by tight raw material markets - 85% of companies reported a shortage of aluminium scrap.
This poses a key problem for the recycling industry, as scrap is an essential basis for resource-efficient and competitive aluminium production.
Semi-finished products
Development in the semi-finished products sector also remains subdued.
Production of rolled products declined slightly by 1% to 452,894 tons.
Extruded products performed worse, with a decline of 4% to 115,794 tons.
This segment thus remained affected by weak demand from key customer sectors such as the construction and automotive industries.
Outlook
The production data is confirmed by recent survey results: 66% of companies rate their order situation as poor or very poor, while 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.
In addition, 76% of companies consider it 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 responding to the ongoing crisis with cost-cutting programmes, capacity adjustments, and location decisions.
These include job cuts, capacity reductions, production closures, and relocations abroad.
Aluminium Deutschland said the industry needed better framework conditions to secure production, employment, and transformation in Germany.
Crucial factors include competitive energy prices, reduced bureaucracy, improved scrap availability, and planning certainty to ensure long-term production and investment in Germany.
