Aluminum Scrap Markets
December 23, 2025
Focus on Demand: Trailer orders take a turn for the worse
Written by Greg Wittbecker
Trailers represent a significant source of demand for aluminum extruders and sheet mills, consuming a lot of 6061 alloys for structural members such as flooring, side rails, and roofing. So, any softness in trailer orders is not welcome news.
Leading truck and trailer analyst firm, FTR Transportation Intelligence, reports November orders fell 19% month on month to 13,071. The pace relative to last year is even more disheartening, declining by 45%. Orders year-to-date total 148,862 units.
The weakness is grounded in many issues:
- Freight revenues continue to be mixed with independents and common carriers finding spot rates to still be weak.
- Net margins for all truckers remain under pressure due to skyrocketing insurance rates and relatively strong diesel fuel costs (The Energy Information Administration reports $3.60 per gallon compared to $3.49 year ago.).
- Trailer costs are still feeling the impact of tariff-related material increases which trailer OEMs are passing through.
Production begins to reflect declining backlogs
November production was 13,533 units, according to FTR. Operating rates fell 23% from October. The backlog-to-build rate is estimated at 5.4 months, per FTR estimates.
Repeal of federal excise tax proposed
The Modern, Clean, and Safe Trucks Act (MCSTA), introduced by Rep. Doug LaMalfa, R-CA, is stalled in committee. The bill aims to repeal the 12% federal excise tax on heavy trucks and trailers. Industry groups such as the American Trucking Associations and the American Truck Dealers support the legislation. Both groups argue the tax inhibits fleet modernization and increases operating costs as older, outdated equipment remains on the road.
Trailer OEMs are eager to see this legislation approved as the removal of that 12% tax is seen as a big incentive for hesitant owner-operators and major common carriers to return to the market.
Why this matters
A slump in trailer orders and production deprives extruders and sheet mills some lucrative business. Trailer profiles tend to be larger, higher weight per foot, and in good volume which affords excellent productivity for larger circle size presses. The 6061 alloy is also scrap friendly. Scrap discounts vis-à-vis primary are very wide at the moment and this means good profitability.
Sheet mills also relish this business because the typical 6061 alloy is relatively straight forward to cast and roll. Like their extruder counterparts, they can use a substantial amount of scrap in the casthouse and it’s a big contributor to total margin.
In coming months, the pending legislation to repeal the Federal Excise Tax could be a catalyst in reviving the trailer markets.
