As Fastmarkets embeds CBAM into billet premiums, how do aluminium traders calculate costs?
We were all happy when we heard about the scrap exemption from the CBAM regime. But instead, it turned out to be a two-edged sword. If an EU business imports scrap and manufactures secondary aluminium, it will have to pay the tax for the secondary aluminium manufacturing, in accordance with the ETS system. If the business decides to import secondary aluminium, it still has to pay for CBAM. So, is shelter from tax a mere illusion for European aluminium businesses?
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From January 1, 2026, Fastmarkets will include the European Union’s (EU’s) Carbon Border Adjustment Mechanism (CBAM) costs in its secondary aluminium billet premium, DDP Europe (MB-AL-0383) and primary 6063 extrusion billet premium, in-warehouse Rotterdam (MB-AL-0002) assessments.
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