Rusal sees a demand surge for low-carbon aluminium in the Chinese market

According to our source in China, it has been reported on December 30, 2022, Rusal, a significant low-carbon aluminium producer, is trying to increase its low-carbon aluminium exports to China in light of the two countries cordial relations and the growing demand for the metal from Chinese electric vehicles manufacturers.

Per the 2021 data from the International Aluminium Institute (IAI), primary aluminium is one of the most carbon-intensive segments of the metals business, and the automobile industry uses a lot of aluminium sheets, producing an average of 16.6 tonnes of carbon dioxide per tonne of metal.

In order to reduce carbon emissions, more and more low-carbon aluminium is produced utilizing hydropower or recycled materials.

The Russian aluminium producer contributes significantly to China's annual imports of 1.58 million tonnes of aluminium by selling 400,000 to 500,000 tonnes of aluminium to China.

According to one of Rusal's officials in China, during an event held by Shanghai Metals Market in Foshan in southern China stated that the company is offering its low-carbon product at a premium of between $20 and $40 per tonne over spot prices in China, compared with as much as $60 a tonne over aluminium contract prices listed on the London Metals Exchange in Europe.

Xia Ding, the procurement manager for raw materials at Chinese EV maker Nio, said, "Demand for low-carbon aluminium is higher in Europe. However, many Chinese electric vehicle makers are working to lower their carbon footprint in anticipation of growing pressure from overseas consumers to decrease emissions."

Nio intends to use aluminium products with a carbon footprint of no more than 7 tonnes. The metal accounts for roughly half of the emissions from a Nio car. Aluminium producers plan to increase low-carbon metal output by 10 per cent in 2023, lowering costs for carmakers looking for environmentally friendly supplies.