How Much of Your Aluminum Alloy’s Price is Just Waste?

You focus on the price per kilogram, trying to get the best deal. But then you watch as up to half of that expensive material is machined away into scrap.

The true cost of an aluminum alloy isn’t its price per kilogram; it’s the price of the final component. By using a near-net forged shape, you drastically reduce material waste, machining time, and tool wear, lowering your total project cost.

I’ve walked through countless machine shops and seen the same story. Bins overflowing with aluminum chips, all paid for at a premium price per kilogram. The cost per kilogram is a trap; your true expense is the material you machine away. That’s why we champion near-net shape forging. We deliver a part that is already close to its final dimensions. This means you pay for the material in your component, not the material on your floor. Our price reflects a lower total project cost because we are engineered to eliminate your single biggest expense: waste.

How Much Does Aluminum Cost Per Kg?

You need a budget for your project and ask for a price per kilogram. You get a vague answer or a price that changes tomorrow, making it impossible to plan effectively.

There is no single cost. The price per kg depends on the daily market price (LME), the specific alloy, its form (forged, cast, extruded), and the order quantity. Forged alloys always carry a premium over raw ingot.

When a client asks me for a simple per-kilogram price, I explain that it’s like asking for the price of a car without specifying the model. The base price of aluminum is set daily by the London Metal Exchange (LME), which is the price for pure, raw ingot. But nobody makes parts from raw ingot. From there, we have to add the costs for the alloying elements—zinc and copper for a 7xxx series alloy are more expensive than the magnesium and silicon in a 6xxx series. Then, the manufacturing process adds value. A cast billet is relatively simple. An extruded bar is more complex. A forged disc or ring, which has a refined grain structure and superior strength, is the most valuable form. This is why a simple "cost per kg" is misleading. We provide quotes based on a specific grade, shape, and quantity to give you a real, actionable number for your project.

Are Aluminium Alloys Expensive?

You compare the price of aluminum to steel and see a significant difference. This makes you question if aluminum is the right choice, fearing it will make your project too costly.

While aluminum’s price per kilogram is higher than steel, its low density means you get almost three times the volume for the same weight. For many parts, the final component is lighter, stronger, and often cheaper.

Comparing aluminum and steel on a per-kilogram basis is an apples-to-oranges comparison. The real question is, "What is the cost to achieve the required performance?" Aluminum’s density is about one-third that of steel. This means if you have a component of a specific size, the aluminum version will weigh a third of the steel one. This immediately impacts material cost. But the savings don’t stop there. The lighter weight translates directly to lower shipping and handling costs. Furthermore, many aluminum alloys¹ offer a superior strength-to-weight ratio². You can design a lighter part that still meets the strength requirements. And finally, aluminum’s natural corrosion resistance often eliminates the need for expensive and time-consuming secondary processes like painting or galvanizing, which are essential for steel in most environments. When you add up all these factors, the "expensive" aluminum alloy often results in a more cost-effective final product.

How Does Forging Reduce the Total Cost of an Aluminum Part?

You’ve secured a good price per kg on a solid aluminum disc. But you haven’t factored in the hidden costs of turning that raw material into a finished part.

Forging creates a near-net shape, attacking cost from four angles: you buy less material, spend less time machining it, wear out fewer cutting tools, and pay less for scrap disposal. This systematically lowers your total cost.

This is the core of our philosophy at SWA Forging. Let’s break down the savings with a real-world example: making a large ring. The traditional way is to buy a solid forged disc. First, you pay for the entire weight of that disc, including the center that will be hogged out. That’s your first loss. Second, you have the immense cost of machining time—the hours your CNC machine and operator spend turning that center material into chips. Third, cutting through that much material causes significant wear on expensive cutting tools, leading to frequent replacements. Finally, you are left with a large pile of scrap that you often have to pay to have hauled away. A custom forged ring from us eliminates almost all of that. We deliver a ring that might only need a final finishing pass. The material you save pays for the forging process, and the drastic reduction in machining time is pure profit for your business.

Conclusion

Stop focusing on the cost per kilogram. Your true cost is in material waste and machine time. A near-net forged part from SWA Forging is the most direct way to lower project expenses.