Russian aluminium company United Co Rusal International is considering supply of more low-carbon aluminium to China due to surging demand for the metal from electric vehicle (EV) companies, reported Reuters citing Rusal manager.
Rusal Shanghai Economic and Trade Company vice-president Huang Wenqian was quoted by Reuters as saying to a conference: “We are very optimistic about China’s low-carbon demand.”
Rusal has annual electrolytic aluminium production capacity of four million tonnes, majority being low-carbon with no more than four tonnes of CO2 emissions.
Each year, the Russian company sells 400,000 to 500,000 tonnes of aluminium into China, marking a large share of the Asian country’s imports of 1.58 million tonnes.
At the event held by Shanghai Metals Market in Foshan in southern China, Wenqian said the Russian company is offering premium of between $20 and $40 for each tonne of its low-carbon product at spot prices in China.
The aluminium contract prices listed on the London Metals Exchange in Europe are as much as $60 per tonne.
Chinese EV maker Nio raw materials procurement manager Xia Ding said many EV firms in China are keen on reducing their carbon footprint due to surging pressure from foreign consumers to reduce emissions.
Xia said that Nio aims to use aluminium products with CO2 emissions capped at seven tonnes.
Earlier this year, Bloomberg News Rusal was weighing sale of aluminium directly to London Metal Exchange (LME) warehouses in Asia.