Brazilian Aluminium Market: CBA Leads with Low-Carbon Production

Policy Lessons: Brazilian Aluminium Can Follow Indonesia

Brazil can strengthen its aluminium industry by learning from Indonesia’s success, says CBA CEO Alves. Indonesia shifted from raw bauxite exports to domestic aluminium refining. This added value along the production chain and attracted foreign investment. By 2026, Indonesia will commission multiple refineries, reshaping Southeast Asia’s alumina trade flows. Alves recommends Brazil classify aluminium as a critical mineral, encouraging private-public partnerships to boost production.

CBA already holds 50,000 tonnes of idle annual capacity. Restarting Furnace Room 1 will utilize this, supporting Brazil’s role as a low-carbon aluminium producer. Currently, CBA emits 2.8 tCO2e per tonne of aluminium, using 100% renewable hydro and wind energy. These Scope 1 and Scope 2 reductions position the company to capture growing demand for green aluminium worldwide.

Market Premiums, CBAM, and Strategic Exports

CBA already benefits from an indirect green premium. Alves says some sectors, such as beauty and cosmetics, prefer low-carbon aluminium. The company plans to reduce emissions by 40% by 2030. U.S. tariffs on aluminium affect only 3% of CBA exports. Alves explains that sales continue strong in Europe and Latin America, with flexible production shifting between ingots and foils.

The European Carbon Border Adjustment Mechanism (CBAM) has influenced product strategy. Companies stock ingots ahead of potential implementation. Meanwhile, rising global competition temporarily redirects exports to Brazil, reinforcing the need for low-carbon credentials. São Paulo premiums remain stable, while U.S. Midwest aluminium premiums hit historic highs due to inventory depletion.

SuperMetalPrice Commentary:

CBA’s approach highlights Brazil’s potential to lead in low-carbon aluminium. Strategic use of idle capacity, renewable energy, and market flexibility strengthens resilience against tariffs and trade shifts. By leveraging green credentials, Brazil can capture premium markets in Europe and Latin America. The combination of operational efficiency and sustainability positions CBA to benefit from global decarbonization trends and evolving aluminium demand.