AEGIS View: Current curtailments or shutdowns are relatively modest but if China continues down the eco path, supply-demand balances could be disrupted.
“The carbon footprint of primary aluminum can span a wide range from less than 5 tonnes of carbon equivalent for renewable energy such as hydro to more than 25 tonnes for coal.”Reuters, 3/19/2021
Source article (opens in new tab): Column: Aluminum rattled by signs of “green” disruption in China
- China used coal for power for near 90% of its aluminum smelting in 2019, compared to North America, which is about 82% from hydroelectric
- China’s Inner Mongolia curbed aluminum output because of energy-use (read: “coal”) limits
- Future aluminum expansions are under threat
- Less aluminum production in China has coincided with high imports – early-2021 imports of unwrought metal were higher than any period going back to 2009-2010