Calculate Embedded Emissions for Unwrought Aluminium (HS7601)

Enter your input

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.

13 DECEMBER 2023 AL CIRCLE

Japanese aluminium premium expected to rise in later 2024 owing to firmer domestic demand

EDITED BY : SARNALI CHAKRABORTY 2MINS READ

According to trading company Marubeni, the premiums paid by Japanese purchasers for aluminium are expected to stay within the range of $75-$95 per tonne during the first quarter of 2024. However, these premiums are anticipated to progressively increase after that, owing to a tighter supply in Asia and more robust domestic demand.

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Japan is the largest importer of aluminium in Asia. The premiums it agrees to pay each quarter, in addition to the London Metal Exchange (LME) cash price, establish the standard for the area. The Japanese premiums for this quarter have decreased to $97 per tonne, representing a 24 per cent decline compared to the previous quarter. This decline may be attributed to weak demand both domestically and internationally.

"Japan premiums are expected to climb in later 2024 to reflect tighter supply in Asia due to higher imports from China," said Eisuke Akasaka, general manager at Marubeni's light metals section.

During the talks for primary metal shipments from January to March, a leading global aluminium manufacturer has proposed a premium of $95 per tonne to Japanese purchasers. This premium is 2 per cent lower than the previous quarter and is intended to account for the weak demand and excessive stocks. Marubeni 8002.T, a prominent Japanese aluminium trader, forecasted that the premiums would remain within the $75-95 level throughout January-March but are expected to fluctuate between $90 and $150 for the remainder of 2024.

Akasaka said that the robust increase in demand in India might potentially decrease its exports, restricting the availability of alternative supply for Russian metals. Japan has been reducing its reliance on Russian metals since Moscow invaded Ukraine. Aluminium prices CMAL3 are trading at $2,137 per tonne, the lowest level over three months. Marubeni forecasts an average aluminium price of $2,300 in the first quarter and $2,500 for the rest of 2024, despite strong worldwide demand for electric cars and solar power and a supply constraint of roughly 1 million tonnes in China, as it did this year.

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