The economic situation of the German aluminium industry presented a divided picture in the second quarter of 2026. While specialised sectors such as aerospace and the packaging industry recorded stable demand, traditional core industries like automotive, construction and mechanical engineering struggled with declining orders. These developments are reflected in the results of the latest economic survey by Aluminium Deutschland.
Half of the surveyed companies (50 per cent) currently rate their order situation as poor to very poor, 30 per cent describe the situation as normal for the time of year, while a further 20 per cent consider their order situation to be good. This subdued sentiment is also reflected in the actual production data. The production of semi-finished aluminium products fell by two per cent in the first half of 2026 to just under 1.15 million tonnes. In the recycling sector too, the total volume decreased by two per cent in the first half of the year to around 1.36 million tonnes.
Geopolitical tensions, particularly the Iran conflict, are placing an additional burden on the sector. 85 percent of the companies surveyed report rising input costs for raw materials and preliminary products, while 40 percent report disruptions in supply chains. These uncertainties are leading to growing unease among customers and forcing companies to make price adjustments and adapt their supply chains.
competitive pressure from China
Another significant factor is the ongoing competitive pressure from China. 85 percent of companies view China as a risk to Germany as an industrial location. The aggressive price and undercutting competition, coupled with unequal environmental and social standards, poses a considerable challenge. In addition, many companies fear a dependence on Chinese raw materials, which further increases uncertainties.
Scarcity of raw materials makes the circular economy more difficult
The raw material supply remains a critical issue. The scarcity of aluminium scrap on the European market is presenting companies with major challenges. High scrap prices and limited availability of post- and pre-consumer aluminium scrap are hindering the development of an efficient circular economy: 55 per cent of companies are already feeling the effects of the scarcity.
Anchor of stability in the crisis
Despite these challenges, there are also bright spots. The aerospace, defence and packaging sectors are acting as anchors of stability during the crisis. These industries are seeing a predominantly positive order situation and are offering the aluminium industry a degree of stability. Rob van Gils, President of Aluminium Deutschland, emphasises the need for reliable energy and industrial policy framework conditions to secure the competitiveness of Germany as an industrial location.
Source: Aluminium Germany
