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In the first quarter of 2022, some German aluminium producers recorded a sharp decline in production. The reasons for this include rising energy costs and problems in the supply chains. The issue of energy supply is a particular burden on the industry: according to a member survey by Aluminium Deutschland, nine out of ten companies would not be able to switch to other energy sources in the event of a gas embargo.
A particularly sharp decline in aluminium production was recorded in the Producer of raw aluminium down by almost a fifth (-18 per cent) to a good 235,000 tonnes. The drastic rise in electricity costs is pushing energy-intensive primary aluminium smelters in particular to the limits of profitability, forcing them to significantly reduce their capacity utilisation.
The trend in the semi-finished products sector was more moderate. With a volume of 502,000 tonnes, the Production of rolled products comparatively stable compared to the same quarter of the previous year (-1 per cent). The production of extruded products is still up 6 per cent in the year to date up to March. After a strong start to the year, however, it fell by 1 per cent in March.
„Thanks to its solution expertise, aluminium is a key material for the realisation of the Green Deal. For us as an energy-intensive industry, the current development of electricity and gas prices is a tough test. The often medium-sized companies in the aluminium industry are being pushed to the edge of their existence in some cases. The German and European aluminium industry is suffering. Meanwhile, it is flourishing in other parts of the world with significantly poorer environmental and climate standards. This is carbon leakage par excellence.“
Dr Hinrich Mählmann, President of Aluminium Deutschland (AD)
From one of Aluminium Germany The results of a member survey carried out by the German aluminium industry show that nine out of ten companies cannot switch to another energy source if gas becomes unavailable in the short term. Already from a Reduction in gas supply of up to 30 per cent would bring production to a standstill at half of the companies, For another quarter, this would be the case with a reduction of 30-40 per cent.
„We need a reliable energy supply that is as environmentally friendly as possible at competitive prices. Otherwise, there is a risk that we will become even more dependent on trading partners, some of whom are unpredictable. Gas is still indispensable for the aluminium industry and its production processes. If gas supplies from Russia were to be cut off, this would have a dramatic impact on the operations of the German aluminium industry and very soon on many of our customer industries.“
Dr Hinrich Mählmann, President of Aluminium Deutschland (AD)
Source: Aluminium Deutschland e.V.
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