Low-carbon aluminium to award market share gains before higher premiums, CBA says

Lower-carbon aluminium may not yet award producers with higher premiums, but it has started making a difference when consumers pick their suppliers, according to a key executive at Companhia Brasileira de Alumínio (CBA).

“At first, no company is really aiming to charge a higher premium for ‘greener’ aluminium,” CBA's primary aluminium director Luis Jorge Nunes told Fastmarkets in an exclusive interview. “But lower-carbon footprints have to be shown so consumers that are after this kind of product can have the opportunity to buy it.” The move to a more sustainable aluminium production is inevitable and something society is now asking for, Nunes said, adding that, in the future, low-carbon aluminium ingot could be sold as a different brand, like low-contaminant P1020A is currently, and premiums would be different. Fastmarkets last assessed the aluminium P1020A premium, delivered São Paulo region, at $210-240 per tonne on October 8, stable for the past five weeks. The domestic premium has been under pressure since September as stocked material is being sold at discounts, amid...

Published

Renato Rostás

October 14, 2019

18:15 GMT

São Paulo