Bloomberg reported that Aluminium Dunkerque Industries France has curbed production of the metal in the past two weeks in response to a surge in power prices. The cuts equate to about 3% of Aluminium Dunkerque’s production capacity. Labor union representative Mr Laurent Geeraert said that the plant has lost about 20 million euros since the beginning of November, and further curtailments may be necessary if power prices remain at sky-high levelsWhile aluminum prices have rallied more than 40% this year and demand for the plant’s products is booming, profitability is being eroded by the far greater surge in power prices over the past few weeks. At one-month baseload prices in France, it would cost about USD 11,000 for the power typically needed to make one ton of aluminum, which was trading at about USD 2,800 a tonne on the London Metal ExchangeAluminium Dunkerque is Europe’s largest primary aluminum smelter and a prized industrial asset that’s of strategic importance to the French state. Private equity firm American Industrial Partners seized control of the smelter in October by foreclosing on debts held by Liberty Industries France, a unit of Sanjeev Gupta’s distressed GFG Alliance.
Bloomberg reported that Aluminium Dunkerque Industries France has curbed production of the metal in the past two weeks in response to a surge in power prices. The cuts equate to about 3% of Aluminium Dunkerque’s production capacity. Labor union representative Mr Laurent Geeraert said that the plant has lost about 20 million euros since the beginning of November, and further curtailments may be necessary if power prices remain at sky-high levelsWhile aluminum prices have rallied more than 40% this year and demand for the plant’s products is booming, profitability is being eroded by the far greater surge in power prices over the past few weeks. At one-month baseload prices in France, it would cost about USD 11,000 for the power typically needed to make one ton of aluminum, which was trading at about USD 2,800 a tonne on the London Metal ExchangeAluminium Dunkerque is Europe’s largest primary aluminum smelter and a prized industrial asset that’s of strategic importance to the French state. Private equity firm American Industrial Partners seized control of the smelter in October by foreclosing on debts held by Liberty Industries France, a unit of Sanjeev Gupta’s distressed GFG Alliance.
