Aluminium: Overview
Cars, cans and cables: where the light metal goes
What this tab covers What the commodity is used for, why, in what volumes and with what alternatives, and its chain from mine or field to end user. Also the latest price moves, top recent news, three things to know, and buttons into each tab.Key uses
| Use | Share | Annual volume | Why this commodity | Alternatives |
|---|---|---|---|---|
| Transport (cars, trucks, rail, aircraft, ships) | 28% | about 29 million t a yearbasis | Aluminium is much lighter than steel for the same volume, resists corrosion and can be cast, extruded and rolled. Cutting vehicle weight saves fuel or extends EV range, so carmakers use it for wheels, engine blocks, body panels, battery enclosures and crash structures. Aircraft rely on high-strength alloys. AL Circle, Global aluminium consumption outlook, Feb 2026; USGS MCS 2026 substitutes | High-strength steel (car bodies) Carbon-fibre composites (aircraft fuselages and wings) Magnesium and titanium (some components) |
| Building and construction (windows, facades, roofing, structures) | 22% | about 23 million t a yearbasis | Extrusions make light, rigid, rust-free window frames, curtain walls and solar panel frames with little maintenance. China's property and solar build-out made this the second-largest use. AL Circle 2026; USGS MCS 2026 substitutes | Steel uPVC (vinyl) window frames Wood Composites |
| Packaging (beverage cans, foil, closures) | 16% | about 17 million t a yearbasis | Thin sheet and foil block light, oxygen and moisture, chill quickly and are easy to recycle. Cans are among the most recycled packaging formats, which helps them compete with plastic. AL Circle 2026; USGS MCS 2026 substitutes | Glass PET plastic Paper and board Tinplate steel |
| Electrical (overhead lines, cables, busbars, electronics) | 15% | about 16 million t a yearbasis | Aluminium conducts less well than copper by volume, but it is much lighter and cheaper for the same conductance. Almost all long-distance overhead transmission lines use aluminium conductors, often steel-reinforced. AL Circle 2026; USGS MCS 2026 substitutes | Copper (cables, windings, heat exchange) |
| Industrial machinery and equipment | 8% | about 8 million t a yearbasis | Machined plate, castings and extrusions give light, stiff frames and heat sinks for machinery, robotics and heat exchangers, with good thermal conductivity. AL Circle 2026 | Steel and cast iron Copper (heat exchangers) Engineering plastics |
| Other (consumer durables, cookware, appliances, chemicals) | 11% | about 11 million t a yearbasis | Light weight, appearance and heat conduction suit cookware, appliances, furniture and consumer electronics casings. AL Circle 2026 | Stainless steel Plastics Magnesium alloys (electronics casings) |
From mine to user
- Bauxite mining About 440 Mt of bauxite was mined in 2025, led by Guinea (150 Mt), Australia (97 Mt) and China (87 Mt) (USGS MCS 2026). Mining is mostly shallow open-cut strip mining.
- Alumina refining (Bayer process) Bauxite is digested in hot caustic soda and calcined to alumina. World output was about 150 Mt in 2025, 93 Mt of it in China (USGS). About 4 t of dry bauxite yields 2 t of alumina.
- Smelting (Hall-Heroult) Alumina dissolved in molten cryolite is split by electrolysis in carbon-lined pots. Two tonnes of alumina make one tonne of metal (USGS). World smelter output was about 74 Mt in 2025, 45 Mt in China. The IAI counted 73.8 Mt of world primary output in 2025.
- Power supply A tonne of aluminium uses about as much electricity as a US household in a year, so smelters cluster near cheap power: Siberian hydro, Icelandic geothermal, Gulf gas and Chinese coal (Blas and Farchy 2021).
- Casting Molten metal is cast into ingot (the LME product), billet for extrusion, slab for rolling, or alloyed foundry ingot.
- Semi-fabrication Rolling mills make sheet, plate, can stock and foil; extruders make profiles; foundries make castings. Hindalco owns Novelis, a large flat-rolled products and recycling business in North America, Europe and Asia.
- End use Transport took about 28% of 2025 consumption, construction 22% and packaging 16% (AL Circle 2026).
- Recycling Scrap is remelted with far less energy than primary smelting needs. In the US, 3.6 Mt was recovered from scrap in 2025, 56% from new scrap (USGS).
Price movement snapshot 2026-10-25
LME aluminium cash settlement 3,043 US$/t Close 2026-10-23 · Westmetall (LME data) 1 week +1.0% 6 months -17.4% World production 73.4 m tonnes, 2024 Largest producer China 59.96% of world Reserve life 66 yrs reserves ÷ 2025 outputThree things to know
- Making a tonne of aluminium uses as much electricity as a US household consumes in a year (Blas & Farchy).
- About 4 tonnes of dried bauxite yield 2 tonnes of alumina, enough for 1 tonne of aluminium (USGS).
- China smelted about 44 million of the world's 72.8 million tonnes of primary aluminium in 2024 (USGS).
Top recent news snapshot 2026-10-25, last 30 days
- Aluminium prices return to February levels as supply-chain pressures persistAL Circle · 2026-10-20
- COMMENTARY: Aluminium's calm belies lingering supply-chain stressReuters · 2026-10-14
- Asian aluminium premium slips to $202/t as MJP Q4 offers fall to $245–260AL Circle · 2026-10-06
- Aluminium futures fall to $3,050/t, hits lowest level since February as supply outlook improvesAL Circle · 2026-10-12
- LME aluminium offer price rises to $3,134.5/t as stocks remain unchanged at 240,375tAL Circle · 2026-10-06