Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Singapore-based base metals trader Trafigura has set up a low carbon aluminum financing facility with Natixis and Rabobank for up to $500mn.


Under the agreement, the company will receive loans at a preferential interest rate from the institutes and will pass on the benefits to producers in the form of premiums paid on low carbon aluminum trades. 


Trafigura explained in a media statement on Tuesday that it established this platform to meet the downstream demand for green aluminum and help producers transition to a lower carbon footprint while refining and making semi-finished aluminum. 


The company noted that it has witnessed increasing demand for green aluminum in Europe, especially from the automotive sector, in line with the EU’s Aluminium Stewardship Initiative (ASI) and from the global packaging industry. 


Trafigura also indicated that aluminum demand will continue to increase in the medium- and long-term owing to its widespread use in the automotive and aerospace sectors as well as consumer goods and construction. Aluminum production across the globe has continued to tick upward as evidence of the same. The Aluminum Association has also confirmed that this is the fastest-growing metal in the fabricating of car parts. 

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