Steel News

We strive to let you one step ahead of the market.

Aluminum production cuts in Europe continue in spite of relief from high electricity prices

23 Mar 2023 16:51 reported by Cassie Chen

A A A
Up to half of European aluminum capacity has been cut over the past two years as soaring electricity prices cut into the profits of all but the lowest-cost producers. But the cuts are still continuing even as electricity prices have come back down. Prices have not recovered from the steep fall that began a year ago, despite all the capacity being taken offline.

Due to high electricity prices since the end of 2021, European smelters have cut their annual aluminum capacity by more than 1 million tons. Average monthly wholesale electricity prices peaked in August last year, in some cases 10 times higher than two years ago.

Even with the fall in electricity prices, producers' margins are still insufficient. Electricity prices in Europe are still three times higher than they were two years ago. Aluminum prices have not recovered enough to save producers' profit margins, or even at all.

The latest cuts in European aluminum production may have less to do with electricity prices than with a structural shift in primary production eastwards.

Back to Steel News

Related News

Hydro invests $85 million to build new casting line of aluminum recycling

  • Aluminum
  • 13 Jun 2024 15:21

Rio Tinto acquires 11.65% stake in Boyne Smelter

  • Aluminum
  • 13 Jun 2024 15:13

India replaces Russia to dominate LME's aluminum stocks

  • Aluminum
  • 13 Jun 2024 14:56

Recycled aluminum to boost global supply amid decarbonization push

  • Aluminum
  • 11 Jun 2024 17:29

EU initiates AD expiry review on certain aluminum foil in rolls from China

  • Aluminum
  • 6 Jun 2024 15:24

Metal Price Index

Learn more

LME Official Bid Price

  • Zinc
  • 2,808.00
  • 2,861.50
  • Aluminum
  • 2,496.00
  • 2,557.00
  • Copper
  • 9,732.00
  • 9,859.00
  • Nickel
  • 17,525.00
  • 17,775.00

Learn more

Coil Exchange Center

  • 2B Coil-Jul
  • 0
  • 0
  • NO1 Coil-Jul
  • 0
  • 0
  • 2B Coil-Jul
  • 0
  • 0
  • NO1 Coil-Jul
  • 0
  • 0

Learn more