France's biggest aluminium smelter Aluminium Dunkerque plans to reduce production by one fifth in response to mounting electricity prices. The output cut will last at least until the start of next year. The site in northern France has annual production capacity of around 285,000 tonnes.Other aluminium and metallurgical firms in Europe have lowered output as soaring power costs have hurt margins for energy-intensive industries. The European Association of Metallurgy Eurometaux has published a joint letter from 40 heads of European steel groups regarding the rise in energy prices. According to the association, Europe has already reduced about half of the production of aluminum and zinc, which are used in the production of a wide variety of products - from cars, aircraft and packaging to galvanized steel. The letter says Europe's clean energy goals require a competitive and growing steel sector to ensure a reliable supply of the additional raw materials needed to move away from fossil fuels.The letter says “Europe cannot have a successful energy and commodity strategy if its electricity and gas prices remain at today's levels for a long period without any changes. The long-term investment climate for all strategic metals production operations and projects in the EU risks being undermined, with more closures to follow next year as companies are not protected by their electricity price hedging in 2022. Any further loss of production in the EU will also increase global greenhouse gas emissions due to the replacement of supplies from more polluting regions. Therefore, European non-ferrous metal producers are calling for emergency EU action to prevent irreversible damage from rising electricity and gas prices. Producers said the EU should take temporary measures to reduce the price of electricity offered to the market and improve the temporary structure of state aid.”
France's biggest aluminium smelter Aluminium Dunkerque plans to reduce production by one fifth in response to mounting electricity prices. The output cut will last at least until the start of next year. The site in northern France has annual production capacity of around 285,000 tonnes.Other aluminium and metallurgical firms in Europe have lowered output as soaring power costs have hurt margins for energy-intensive industries. The European Association of Metallurgy Eurometaux has published a joint letter from 40 heads of European steel groups regarding the rise in energy prices. According to the association, Europe has already reduced about half of the production of aluminum and zinc, which are used in the production of a wide variety of products - from cars, aircraft and packaging to galvanized steel. The letter says Europe's clean energy goals require a competitive and growing steel sector to ensure a reliable supply of the additional raw materials needed to move away from fossil fuels.The letter says “Europe cannot have a successful energy and commodity strategy if its electricity and gas prices remain at today's levels for a long period without any changes. The long-term investment climate for all strategic metals production operations and projects in the EU risks being undermined, with more closures to follow next year as companies are not protected by their electricity price hedging in 2022. Any further loss of production in the EU will also increase global greenhouse gas emissions due to the replacement of supplies from more polluting regions. Therefore, European non-ferrous metal producers are calling for emergency EU action to prevent irreversible damage from rising electricity and gas prices. Producers said the EU should take temporary measures to reduce the price of electricity offered to the market and improve the temporary structure of state aid.”
