The Dark Future Of Aluminum In Europe
A full recovery of the industry in Europe is not expected.
Aluminium production is considered the most energy-intensive. Therefore, despite high prices for aluminium, the sharp increase in the cost of electricity has proven critical for the European aluminium industry. The consequence has been a significant reduction in production – by about 15% after the escalation of the military conflict in Ukraine.
Aluminium production in Europe has become economically unviable.
2022 turned out to be the most difficult year in the history of Slovakia’s largest aluminium smelter, Slovalco, a key supplier not only for Slovakia, but also for the entire European Union. In August 2022, its board of directors decided to cuts its losses and close down production of primary aluminium – after 70 years of operation.
A full recovery of the industry in Europe is not expected. From a long-term perspective, it is more profitable for manufacturers to build new plants in regions with cheaper electricity than to restore production in Europe.
Some of the traditional capacities, however, will remain, primarily due to the security of supplies. However, as experts note, European aluminium will be more expensive than aluminium from regions with low electricity prices; safety is a cost.
A full recovery of the industry in Europe is not expected. From a long-term perspective, it is more profitable for manufacturers to build new plants in regions with cheaper electricity than to restore production in Europe.
Some of the traditional capacities, however, will remain, primarily due to the security of supplies. However, as experts note, European aluminium will be more expensive than aluminium from regions with low electricity prices; safety is a cost.
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Your trust is invaluable to us, and we want you to feel confident when interacting with our platform. We do not utilize any marketing trackers or other programs that could potentially identify users. Additionally, our website does not employ data collection forms such as public message submission forms.
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