Global aluminium fundamentals remain tight as prices resist correction – 19 January 2026
According to SMM analysis, LME aluminium cash settlement climbed sharply from around USD 2,683.5/t in October 2025 to over USD 3,180/t in early January 2026, representing strong price momentum supported by supply-side policies such as the EU’s CBAM and broad support from downstream sectors.
👉 Source: SMM aluminium market analysis — https://news.metal.com/newscontent/103561181/%E3%80%90SMM-Aluminium-Market-Analysis%E3%80%91The-European-Union%E2%80%99s-Carbon-Border-Adjustment-Mechanism-CBAM%3A-Implications-on-the-Global-Aluminium-Industry?utm_source=chatgpt.com
Summary :
The European Union’s Carbon Border Adjustment Mechanism (CBAM) is a policy introduced to prevent carbon leakage and ensure fair competition by regulating the import of carbon-intensive goods into the EU. Launched in October 2023, CBAM targets six high-emission sectors: cement, iron and steel, aluminium, fertilisers, electricity, and hydrogen. The CBAM mechanism and export restrictions may become one of the key concerns in international aluminum trading and significantly affect the flow of aluminum raw materials and aluminum products.
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