Core Viewpoint - The CEO of Constellium, Jean-Marc Germain, argues that the EU should abolish the upcoming carbon border tax (CBAM) as it may increase costs and benefit overseas suppliers with less stringent pollution regulations, putting the EU aluminum industry at risk of long-term decline [1][2] Group 1: Carbon Border Tax (CBAM) Concerns - The CBAM will impose taxes on certain imported commodities starting in January, aimed at protecting European producers from cheaper competition due to less stringent climate regulations in other regions [1] - Industry experts believe the CBAM has significant flaws and hope that the EU will address their concerns in the final adjustments this month [1] - Germain emphasizes that the primary issue is European competitiveness, stating that the region is "shooting itself in the foot" with the implementation of the CBAM [1] Group 2: Impact on Constellium and the Aluminum Market - Constellium is one of the largest suppliers of aluminum products for aerospace, automotive, and packaging, primarily sourcing aluminum from Europe, which is not subject to the carbon border tax [1] - The anticipated carbon border tax and concerns over supply from Iceland and Mozambique have pushed European spot aluminum premiums to a 10-month high [1] - Rising aluminum premiums indicate increased costs for aluminum products, leading to inflation in costs for all aluminum supplies, regardless of their source [1] - Germain warns that this cost inflation will affect Constellium's industrial customers in Europe [1] Group 3: Long-term Industry Implications - The loopholes in the CBAM allow overseas suppliers to avoid taxes by shipping waste or sending low-carbon aluminum to Europe while supplying high-carbon aluminum to other regions, which does not benefit the environment [2] - The impact of the CBAM may not be immediate, but it could lead to investments moving elsewhere and the closure of production capacity in Europe, resulting in a gradual decline of the industry [2]