FRENCH METALLURGY HARD HIT BY RISING ELECTRICITY PRICES

The energy crisis is becoming a real headache for European metal producers. As electricity and gas prices have risen to record levels, several manufacturers have been forced to reduce or even cease production. A clear example of this can be found in the giants Aluminium Dunkerque and Nyrstar, which have been forced to reduce their metal production.

In the last two weeks, Aluminium Dunkirk, Europe’s largest aluminium smelter, has drastically reduced its production, resulting in significant losses. The French factory has lost around 20 million euros since the beginning of November as a result of the high price of energy.

The price of aluminium has increased in 2021 due to a global shortage, but its profitability is being eroded by the material’s production costs. The cuts already represent around 3% of its aluminium production capacity.

Aluminium Dunkerque is the largest primary aluminium smelter in Europe. Founded in 1991, it specializes in the manufacture of aluminum slabs and ingots, used in the transportation, automotive, aerospace, packaging and construction industries.