As expected, the aluminum economy in Germany continued to cool down in the third quarter of this year. With a drop of a quarter (-25%), the production of raw aluminum fell particularly sharply compared to the same quarter last year. In the period from January to September inclusive, only around 653,000 tons were produced (-22%). The decline has continued to intensify over the course of the year to date. Aluminium Germany President Rob van Gils: "The prevailing electricity price level still does not allow for economic production in Germany and is forcing the operators of aluminum smelters to gradually shut down their furnaces. I am very concerned about whether this elementary raw material still has a future in Germany."
In the aluminium semis processing sector, production volumes fell by 2% to just under 662,000 tons in the past quarter. Manufacturers of rolled products recorded a decline of 3%, while producers of extruded products slightly exceeded the level of the same period last year (+1%). In the first nine months of this year, the semi-finished products sector recorded an overall decline of 1% to 2 million tons. However, the comparatively moderate development in the semi-finished products sector should not obscure the fact that difficult times lie ahead here too. Incoming orders already indicate this.
(Source: AD)
Rob van Gils, President of Aluminium Germany (AD), emphasized: "The situation for the entire German aluminium industry continues to threaten its existence. Anyone talking about securing raw materials, resilience and reducing dependencies must not forget aluminum. Because without aluminum, there would be no electric cars, no solar panels and no wind turbines. Without the material, we could throw our ambitious climate targets overboard."
Gas price brake and electricity price cap - implement quickly, but at a competitive level
Van Gils continued: "The announced price caps for gas and electricity until spring 2024 are the right way to alleviate the situation for industry in the short term. That is why they should definitely come into force on January 1, 2023. However, capping the electricity price at 13 cents per kilowatt hour would still not allow the competitive production of primary aluminum in Germany. It is a first step in the right direction, but more must follow."
