The industry organization, Aluminium Deutschland of Germany, stated that the industry requires better framework conditions to ensure production, employment and transformation in Germany.
The association's report states that the overall production of aluminium in Germany has further declined, and 57% of the enterprises are doubtful as to whether the situation will improve by the end of 2026.
The German Aluminium Association stated that the German aluminium industry failed to regain its growth momentum by the beginning of 2026. The production data for the first quarter showed that key sectors remained below the levels of the same period last year. The decline in production was particularly evident among remelting enterprises and extrusion product manufacturers.
The chairman of the German Aluminium Association, Rob van Gijs, said: "Current data shows that the aluminium industry is still operating in a challenging economic and structural environment." "Individual positive developments do not change the fact that key sectors are under pressure." "Without a significant improvement in the business environment, there will be no sustainable improvement in the situation."
Production situation
In the first quarter of 2026, Germany produced 684,564 tons of recycled aluminum. Compared with the same period last year, the output decreased by approximately 3%. The production of semi-finished aluminum products also dropped slightly by 1% to 568,688 tons. There were no signs of recovery at the beginning of the year.
The performance in the recycling sector varied, but overall it showed a downward trend. The output of refining enterprises increased to 128,639 tons, growing by 2%. On the other hand, the output of reprocessing and melting enterprises decreased by 4% to 555,925 tons, becoming the main factor contributing to the overall poor performance in the recycling sector. The tightness of the raw material market made the situation even more severe - 85% of the enterprises reported a shortage of aluminum scrap. This poses a critical problem for the recycling industry, as scrap is an important foundation for resource-efficient and competitive aluminum production.
The development in the semi-finished product sector remains sluggish. The output of rolled products decreased slightly by 1% to 452,894 tons. The output of extruded products performed even worse, dropping by 4% to 115,794 tons. This sector is still affected by the weak demand from key customer industries such as construction and automobiles.
Prospective Outlook
The production data have been confirmed by the recent survey results: 66% of the enterprises rated their order situation as "poor" or "very poor", and 71% of the enterprises believed that their production capacity utilization was low.
The outlook for the remainder of this year remains gloomy. 57% of the enterprises expect that the situation will not improve by the end of 2026. Additionally, 76% of the enterprises believe that it is either impossible or unlikely to achieve climate neutrality by 2045 while maintaining industrial production in Germany.
Therefore, this industry not only witnessed cyclical weakness but also encountered structural risks in production, employment and transformation. Enterprises are responding to the current crisis through cost-cutting plans, capacity adjustments and location decisions.
These measures include layoffs, capacity reduction, production shutdowns, and the relocation of business to overseas locations.
The German Aluminium Association stated that the industry requires better framework conditions to safeguard production, employment and transformation in Germany. Key factors include competitive energy prices, reduction of bureaucracy, improvement of waste availability, and planning certainty, in order to ensure long-term production and investment in Germany.
