The global aluminium industry is facing a supply crunch as the EU's Carbon Border Adjustment Mechanism (CBAM) turns carbon intensity into a primary pricing factor. High-emission producers are seeing costs rise, while countries like South Korea and India are launching carbon reduction R&D and credit trading schemes to maintain export competitiveness. With China's production caps and tightening bauxite exports from Guinea, the market is shifting toward low-carbon aluminium and increased recycling. Demand from the EV and solar sectors continues to drive a projected deficit, pushing the industry toward a circular economy to mitigate carbon-linked trade barriers.
