Aluminum production in Europe has dropped to the lowest levels since the 1970s.
In the aluminum industry, closing a smelter is an agonizing decision. Once power is cut and the production “pots” settle back to room temperature, it can take many months and tens of millions of dollars to bring them back online.
As production drops, the hundreds of European manufacturers that turn metal into parts for German cars or French airplanes are left increasingly reliant on imports that could get costlier. Some buyers are also trying to avoid metal from Russia, which is usually a big supplier to Europe. At recent market prices, the annual power bill for the Slovalco smelter would be around two billion euros, according to Chief Executive Officer Milan Vesely. Slovalco decided to mothball the plant due to a combination of surging energy prices and a lack of emissions compensation that is available to smelters elsewhere in the bloc.
In Germany, the power needed to produce a ton of aluminum would have cost roughly $4,200 in the spot market on Friday after topping more than $10,000 last month, according to Bloomberg calculations. The London Metal Exchange futures price was around $2,300 a ton on Friday. That means curtailments look set to accelerate over the winter.
But while Europe’s production losses account for about 1.5% of global supply, they will leave consumers in Europe increasingly reliant on imports that will be costlier and carry a heavier carbon footprint.
France Dernières Nouvelles, France Actualités
Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.
Scientists Discover the Biggest Dinosaur in EuropeFound in Portugal, the fossilized dino appears to be a sauropod, one of the largest animals to live on land. Dinosaurs Dinosaurfossils Dinosaur fossils
Lire la suite »
Festival La Gacilly-Baden Photo: The Largest Outdoor Photo Festival in EuropeFestival La Gacilly-Baden Photo is the largest outdoor photography festival in Europe, one that spans over 10 miles of exhibitions.
Lire la suite »
Russia’s Gazprom indefinitely closes Nord Stream 1 Pipeline to EuropeThe Russian energy giant Gazprom scrapped its Saturday deadline and indefinitely extended its gas cuts to Europe.
Lire la suite »
The engineer who built an airplane in his backyard is flying around Europe with his familyAshok Thamarakshan built an aircraft in his backyard to take his family around the world. The G-Diya is currently on her way to scale heights.
Lire la suite »
Motion Picture Association CEO Charles Rivkin on Hollywood’s Increasingly Strong Ties With EuropeMotion Picture Association CEO Charles Rivkin is at the Venice Film Festival with Stan McCoy, the org’s chief for Europe, to attend a panel on the economic impact of film and TV production in…
Lire la suite »
German autos association sees lower passenger car deliveries in U.S., Europe | AutoblogGerman autos association VDA dampened its forecast for the passenger car market in the United States and Europe, citing inflation, interest rates and ongoing supply chain troubles.
Lire la suite »