Brief study of the European aluminium sector: High energy prices still project production uncertainty; CBAM might dilute import rate
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Update time : 2023-12-29 08:30:13
The European Green Aluminium Summit 2023, organised by Shanghai ECV International Co., Ltd., which took place on October 18-19 in Frankfurt, Germany, was enough to set the tone for the month of November. The summit addressed the urgent concern of reducing carbon emissions in the aluminium industry, which accounts for around 2 per cent of global anthropogenic outrush. The conference explored sustainable practices, green trends, and carbon reduction strategies throughout the entire aluminium life cycle, from production to recycling. Notable speakers from the industry, including organisations like Boston Consulting Group, ALCOA, Hydro, RIO TINTO, and Emirates Global Aluminium (EGA), shared their expertise and experiences.
The European aluminium sector is the flagbearer of the global environmental, social and governance (ESG) movement with its noble ideology of transforming major production lines into sustainable and eco-friendly ones. In the wake of the Russia-Ukraine crisis, energy prices skyrocketed in the European sector. This resulted in the partial unit closure of two major European aluminium producers, Speira and Norsk Hydro. They had to shut down their facilities due to high energy prices and market uncertainty. Speira closed down its German facility in Rheinwerk and had plans to focus exclusively on recycling and processing aluminium to create value-added products. Similarly, Norwegian aluminium giant Norsk Hydro shut down its smelter in Slovakia and ended primary production there, with only the recycling unit remaining open. These closures highlight the prevailing challenges in the European aluminium industry as overall production has declined to its lowest level since the 1970s.
