EU proposals threaten disruption to European aluminum market
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The EU could ban Russian aluminum imports, causing supply shortages and price spikes in the European aluminum market.
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The upcoming Carbon Border Adjustment Mechanism will introduce carbon tariffs on imported aluminum in 2026, incentivizing companies to seek low-carbon suppliers or use more scrap.
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These changes will likely compel European aluminum companies to decarbonize and adjust supply chains, leading to higher costs.
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European aluminum prices could decouple from the global market due to carbon taxes and supply limitations.
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The changes mirror what happened to U.S. steel and aluminum markets after Trump's Section 232 tariffs were introduced.