Primary aluminium inventories dropped as demand picked up

The EU Carbon Border Adjustment Mechanism entered its definitive phase on January 1, 2026, while European Aluminium has raised concerns over the potential inclusion of indirect Scope 2 emissions. Director General Paul Voss warned that European smelters already bear carbon-related costs through electricity prices, and differences in emissions accounting for imported aluminum could further weaken the competitiveness of EU producers. The association also called for a unified default emissions value for unwrought aluminum produced using pre-consumer or post-consumer scrap, while opposing additional green investment conditions tied to ETS financial support. Meanwhile, Fastmarkets assessed the European low-carbon P1020A aluminum premium at $15–30/mt on October 2, up from $10–25/mt on August 7, although downstream buyers remain reluctant to pay higher premiums for low-carbon metal.

Chinese investors are exploring plans to establish an aluminum production facility alongside green energy infrastructure in Samalaju, Bintulu, Sarawak, Malaysia, with the energy facilities intended to supply electricity for manufacturing operations. Malaysian Deputy Prime Minister Ahmad Zahid Hamidi confirmed on November 2 that discussions had taken place with the Sarawak state government, with the proposed project targeting international markets. The investment plan combines aluminum manufacturing with green energy development, although the project's investment value, production capacity, construction timeline and energy technologies have not yet been disclosed. Meanwhile, a Chinese business delegation has indicated potential investments totaling approximately $15 billion in Malaysia, covering high-tech and value-added industries. The figure represents broader investment interest rather than funding specifically allocated to the proposed aluminum project.