The Aluminum Market Under Pressure: What Recent Disruptions Mean for 2026

The aluminum market is facing significant and ongoing disruption, creating ripple effects across manufacturers, distributors, and customers alike. Recent events have intensified an already strained supply chain, and the impacts are now becoming unavoidable across the foodservice and packaging industry.

A Second Fire at Novelis Intensifies Supply Constraints

One of the most critical developments has been a second fire at a Novelis facility, a major global supplier of aluminum sheet and coil. Novelis plays a key role in supplying raw aluminum material used throughout the packaging industry, including disposable aluminum foil pans and containers.

This latest incident further restricts available supply at a time when aluminum demand remains strong and inventories are already tight. As a result, manufacturers are facing reduced allocations of raw material, longer lead times, and higher procurement costs.

Manufacturers Begin Capping Purchases and Reporting Shortages

In response to ongoing material constraints, many manufacturers have begun implementing purchase caps, limiting the quantity of products customers can buy. These measures are being used to manage inventory fairly and stretch limited raw materials across existing demand.

At the same time, some manufacturers are already experiencing material shortages, which may result in intermittent out-of-stock situations, delayed production runs, or reduced product availability heading into early 2026.

Industry-Wide Price Increases Taking Effect January 1, 2026

All major aluminum packaging manufacturers have now announced price increases, reflecting higher raw material costs, energy expenses, and supply-chain disruptions. These increases are not isolated—they are industry-wide and unavoidable.

Confirmed increases include:

• D&W Fine Pack: 25% increase

• Durable Packaging: 22% increase (implemented in Q4)

• Handi-Foil: 18% increase

• Chief Industries: 12% increase

• Safca: 10% increase, effective once material availability improves

Additionally, all manufacturers have announced further increases effective January 1, 2026, reinforcing that cost pressures are expected to continue rather than stabilize in the near term.

Why Aluminum Prices Continue to Rise

The aluminum market is experiencing continuous upward pressure due to several converging factors:

• Reduced production capacity from facility disruptions

• Tight global aluminum inventories

• Ongoing energy and transportation cost increases

• Strong demand across foodservice, packaging, and industrial sectors

Together, these factors are keeping aluminum prices elevated with no immediate relief in sight.

What This Means for Customers

While these challenges affect the entire industry, KitchenDance remains committed to transparency, proactive communication, and helping customers plan ahead. We strongly encourage customers to:

• Forecast needs early when possible

• Place orders ahead of peak demand periods

• Consider flexible product alternatives if certain items are temporarily limited

Our team continues to work closely with manufacturers to secure inventory, manage allocations responsibly, and minimize disruptions wherever possible.

Looking Ahead

The aluminum market remains volatile, and continued price adjustments should be expected into 2026. While these changes are challenging, clear communication and early planning can help reduce surprises and maintain continuity in operations.

We will continue to share updates as conditions evolve and remain dedicated to supporting our customers through these industry-wide changes.

If you have questions about product availability, upcoming pricing changes, or planning for 2026, our customer service team is here to help.