Most metalworking operations think about aluminum scrap the same way they’ve always thought about it — as a byproduct to manage, not an asset to optimize. In previous years, that mindset was understandable. Today, with aluminum prices up more than 46% over the past 12 months and structural supply constraints reshaping the global market, that thinking is costing manufacturers real money.
This post takes a deeper look at the mechanical side of aluminum scrap value recovery — specifically what happens between chip generation and scrap dealer pickup, and how PRAB’s briquetters, conveyors, and integrated systems can dramatically change the economics of your scrap stream.
Aluminum scrap is not a single-priced commodity. The scrap dealer’s quote depends heavily on what you’re bringing them. Wet chips contaminated with coolant. Loose, bulky turnings that fill containers inefficiently. Mixed material that requires additional sorting. These all get discounted — sometimes significantly.
On the other side of the ledger: clean, dry, high-density briquettes — or even well-processed dry chips — command premium pricing. With the global aluminum scrap market valued at $56.77 billion in 2026 and projected to reach $91.49 billion by 2034, there is an intensifying demand for high-quality feedstock from recyclers and remelters who need material that melts efficiently, consistently, and with minimal burn-off loss.
The energy efficiency argument is just as real for recyclers as it is for manufacturers. Recycled aluminum requires only 5% of the energy of primary production. Wet or contaminated scrap reduces that efficiency advantage. Clean, dry, dense scrap amplifies it. Recyclers pay accordingly.
Recycled aluminum makes up more than 80% of U.S. aluminum production — and in this market environment, demand for high-quality recycled feedstock has never been higher.
Consider what happens when aluminum chips leave your machining center without processing. You’re filling containers—and paying transportation costs—for a material that is mostly air. Loose aluminum chips typically occupy enormous volume relative to their actual metal weight.
PRAB’s Dualpak™ Briquetter fundamentally changes that equation. The average aluminum briquette produced by a Dualpak™ is approximately 10 times denser than loose chips. That density improvement cascades into multiple measurable benefits:
The ROI case is clear and well-documented. Martin-Baker, a manufacturer of aerospace safety systems, worked with PRAB to evaluate briquetting for their aluminum machining operation. The results were concrete:
“Based upon current prices and the density of the test briquettes, we get $0.17 per pound more for our briquetted material over loose chips. In addition, the coolant we recover and recycle from this process saves us about $5,000 per year. Despite our relatively low volume of chips, we will have a return on investment for the Dualpak™ system in less than 30 months.” — Jack Rovan, Martin-Baker Johnstown Manufacturing Manager.
Read the full story: Martin-Baker Turns Scrap Metal and Fluid into Revenue Stream.
That $0.17/lb premium was established at previous aluminum prices. In 2026, with aluminum up over 46% year-over-year, that premium has only grown.
Not every operation needs a briquetter. The right choice depends on your volume, the type of fluid, and how you’re pricing scrap with your recycler. PRAB’s team evaluates this directly with customers — but here’s a general framework:
Choose a Chip Wringer/Centrifuge if:
Choose a Briquetter if:
For a detailed comparison, PRAB’s blog post Spinning vs. Briquetting for Maximum Scrap Value walks through the decision framework with clear guidance on when each approach delivers better returns.
Chip-processing equipment only delivers value if your aluminum scrap is reliably moving to it. That’s where PRAB’s conveyor systems come in — and where many operations have significant untapped efficiency.
PRAB offers 13 customizable conveyor options for metalworking environments, with documented installations that are still operating after 65+ years. The right conveyor selection for aluminum depends on chip characteristics, moisture content, plant layout, and volume — but the outcome is consistent: automated, reliable scrap movement that eliminates manual handling, reduces contamination risk, and keeps production flowing.
Pneumatic Conveyors for Aluminum Chips
PRAB’s pneumatic conveying systems are specifically well-suited for aluminum — a light, potentially airborne material. These systems move chips via overhead piping, eliminating floor clutter, reducing manual handling, and enabling flexible routing to centralized chip-processing systems. They can be reconfigured as plant layouts change, making them particularly valuable for operations that are evolving or expanding.
Modular Chip Processing Systems for High-Volume Aluminum
For high-volume aluminum machining operations, PRAB’s Modular Chip Processing Systems provide a fully automated solution in pre-wired, skid-mounted sections that can be operational in as few as 2 weeks. The system handles everything from chip separation and fluid recovery to weighed dry scrap transfer and load-out — with a weigh belt that monitors fill to prevent overloading.
One dimension of aluminum scrap processing that often gets undercounted is fluid value. When aluminum chips come off a machining center saturated with water-soluble cutting fluid, that fluid represents real, quantifiable cost — both what you paid for it originally and what you’ll pay to haul it away or treat it as waste.
PRAB’s chip processing and briquetting systems recover up to 99% of cutting fluid as part of the chip processing workflow. That recovered fluid can be returned directly to your Guardian® Coolant Recycling System, reducing new coolant purchases by up to 75% and cutting fluid disposal costs by up to 90%.
In practical terms, the aluminum scrap processing investment pays for itself twice — once in higher scrap premiums, and again in recovered coolant value.
PRAB has been engineering scrap-handling and chip-processing solutions for metalworking manufacturers since 1950. Here are key resources to help you evaluate your options:
Aluminum prices aren’t reverting to pre-2025 levels anytime soon. The market has changed structurally, and the manufacturers who treat it as a threat will lose ground to those who see it as an opportunity to optimize. Your scrap stream is one of the most controllable variables in that optimization.
PRAB’s systems — briquetters, wringers, shredders, conveyors, and coolant recycling — are purpose-built for aluminum and the full range of metalworking metals. They’re backed by a 100% Performantee® guarantee and over 75 years of field-proven engineering.
The best next step is a materials test. PRAB offers complimentary chip testing so you can evaluate expected density, fluid recovery, and scrap premium before committing to equipment. Start the conversation here.
About the Author
Paul Montgomery is the Marketing Manager at PRAB, Inc., a global manufacturer of engineered metal scrap handling, coolant recycling, and industrial wastewater treatment systems. With more than 30 years of experience across manufacturing, SaaS, custom development, healthcare, and education, he specializes in data-driven marketing that translates plant-floor performance into executive-level financial results. His work centers on total cost of ownership, automation integration, and closed-loop manufacturing strategies that help industrial companies reduce waste, conserve resources, and improve long-term profitability.
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