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rochling

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  2. Competitive energy prices essential for the transformation

Competitive energy prices essential for the transformation

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By Press Packagin… on Mon, 05/22/2023 - 13:04

In the first quarter of 2023, the value added in the aluminum industry continued to fall. Metallurgical production has fallen by more than half, but processing is also significantly lower than in the previous year.

AD President Rob van Gils emphasised : “The aluminum industry in Germany is about to bleed dry. We have to prevent that, because aluminum is and will remain a transformation metal. Until inexpensive green energy is available across the board, we need a transformation or industrial electricity price at an internationally competitive level as quickly as possible. We welcome the fact that the debate has finally been launched. The previous proposals are a start. The aluminum-specific characteristics must definitely be included in the considerations.”

The production of raw aluminum fell by 12 percent in the first quarter - a good 783,000 tons were produced. The primary aluminum smelters recorded a decline for the sixth quarter in a row - at 48,400 tons, their production volume was 62 percent below the level before the energy crisis (Q1 2021).

The aluminum semi-finished products processing sector also posted a quite significant minus (-8 percent) in the first quarter with a good 610,000 tons. The decline among manufacturers of extruded products was greater at -13 percent to almost 142,000 tons than among producers of rolled products at -7 percent (around 469,000 tons). Van Gils continues: “The weak demand from important customer sectors, especially the construction industry and mechanical engineering, means that the capacity utilization of the plants in this country is lower. In addition, we are currently observing strong import pressure from countries where competitors are benefiting from significantly lower energy costs. We are in global competition and around 60 percent of the world's aluminum is already produced in China - with a CO 2 footprint that is three times higher than in Europe. In order to become more independent and at the same time more sustainable, we have to strengthen domestic production. This is the only way the Green Deal can succeed!”

 

Aluminium
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