Calculate Embedded Emissions for Unwrought Aluminium (HS7601)

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Payable emissions (tCO₂e/t)

Total CBAM Cost (€)

Notes:
There may be a difference when calculating the price with respect to import volume, carbon price, and benchmark emissions, as the embedded formula may result in minor variations due to decimal rounding. Therefore, the actual value may vary.

CBAM is applicable to trade volumes starting from 50 metric tonnes. For trade volumes below 50 metric tonnes, CBAM does not apply.

Usage Procedure – How to use the CBAM Calculator Sheet

Enter or update values only in the INPUT
PARAMETERS section (Highlighted in blue) , including
the carbon price, benchmark emissions, CBAM
chargeable percentage (as per the phase-in year),
and imported quantity.

The system will automatically calculate the payable
emissions and the total CBAM cost (€) based on the
inputs provided.

Notes:
• Change any input value to automatically update CBAM cost.
• Formula used: Carbon price × payable emissions × quantity.
• Model aligned with CBAM supplier-side illustrative methodology.

04 DECEMBER 2020 AL CIRCLE

China’s alumina refineries may face losses in Q4 2020 due to higher production costs and lower selling prices: anticipates Joyce Li

EDITED BY : DEBANJALI SENGUPTA 2MINS READ

At the 2020 Nonferrous Metals Industry Chain Annual Conference in Suzhou, Joyce Li, senior analyst at SMM, noted that China’s alumina market would likely see a supply deficit of 361,000 tonnes in 2020, with annual average operating rate at refineries at 78.03 per cent.

“Operating rates at Chinese alumina plants hovered at low levels in 2020, and demand and supply of alumina remained in tight balance,” said Li.

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China’s alumina refineries may face losses in Q4 2020 due to higher production costs and lower selling prices: Joyce Li

Li mentioned that there were 68.65 million tonnes of alumina capacity in operation as of early December among 88.4 million tonnes per year of existing capacity. In the first ten months of 2020, China produced 55.74 million tonnes of metallurgical-grade alumina, down 3.23 per cent year-on-year. By the end of the year, the output is expected to reach 67.54 million tonnes, 1.65 per cent lower than a year ago.

Besides, China imported 3.15 million tonnes of alumina during January-October, an increase of 205.15 per cent year-on-year. By the end of the year, China’s alumina imports are expected to peg at 3.93 million tonnes, anticipated Li.

As for production costs, Li said the domestic bauxite prices gave up the gains that it obtained in the past two years in the first half of 2020 due to the breakout of the COVID-19 pandemic. Prices only rebounded slightly in the second of the year.

Costs at Chinese alumina producers were the highest in the globe in 2019, and diverged in different provinces. Weighted average cash cost of alumina in China stood at RMB 1,926.9 per tonne in the first three quarters of 2020, while weighed average full cost hovered at RMB 2,187.9 per tonne, with Guangxi and Shandong boasting evident cost advantages.

However, in Q4 2020, alumina production costs are expected to grow as prices of bauxite, caustic soda, and coal are anticipated to increase. This, combined with low alumina prices, may fuel further losses at alumina refineries in Shanxi, Henan, and Inner Mongolia.

2021 is anticipated to be a peak year for the commissioning of alumina capacity in China, while overseas oversupply to intensify and the pressure to increase, Li expected.