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.

03 JULY 2026 AL CIRCLE

Japan’s Q3 aluminium premium hits 11-year high at $395/t as physical supply tightens

EDITED BY : ARANYA MONDAL 2MINS READ

The image used in this article is generated with an AI tool and does not depict any real-time moment

Some Japanese aluminium buyers have agreed to pay global producers a premium of USD 395 per tonne over the London Metal Exchange benchmark for July-September 2026 shipments, up 12–13 per cent from the previous quarter, according to industry sources.

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The premium compares with USD 350–353 per tonne paid for April-June deliveries and marks the third consecutive quarterly increase. It is also the highest since January-March 2015, when premiums touched USD 425 per tonne.

Japan is a major aluminium importer in Asia, making its quarterly premium settlements an important reference for primary metal shipments. The premium is paid on top of the prevailing LME aluminium price.

Another step up from Q2

The latest settlement extends a rise that was already evident in the second quarter. Japanese buyers agreed to pay around USD 350 per tonne for April-June shipments, while global producers had proposed premiums of USD 220–250 per tonne at the end of February. Those proposals were 13–28 per cent higher than the USD 195 per tonne agreed for the preceding quarter.

The jump also brings renewed attention to how physical aluminium is priced. A transaction typically has two parts: the LME cash price, which reflects broader global supply and demand, and a separately negotiated physical premium.

That premium covers freight, insurance and financing costs, but it also reflects how much metal is actually available for delivery in a particular market and during a particular period. When nearby supply becomes harder to secure, the premium can rise even if the underlying LME price follows a different path.

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Tight availability strengthens producers’ hand

The Q3 2026 increase comes against geopolitical disruptions that have affected aluminium availability, altered supply routes and trade flows, and reduced the amount of spot metal accessible to Asian buyers. Those pressures had not materially eased as Q3 negotiations progressed, leading producers to price offers around continued tightness in the physical market.

Low inventories in LME warehouses have reinforced that pressure. With less exchange-held metal available, buyers have fewer options to fall back on the spot market instead of contracted supply, giving producers greater leverage in negotiations.

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