Aluminum coils are differentiated by grades based on their alloy composition, thickness, and specific applications. Common grades include 1000 series (99% pure aluminum, soft and malleable), 3000 series (aluminum-manganese alloys, good for cooking utensils), 5000 series (aluminum-magnesium alloys, used in marine applications), and 6000 series (aluminum-magnesium-silicate alloys, known for strength and used in construction). Each grade has distinct properties such as strength, formability, and corrosion resistance, which determine their suitability for different industries and applications.