November 13, 2023
In the third quarter of this year, Germany experienced a significant reduction in aluminum production, as per a report from the Aluminium Deutschland (German Aluminium Association).
Primary aluminum production in smelters saw a nearly 50 percent decrease, and the manufacturing of semi-finished aluminum products faced a decline in the high single-digit percentage range.
To be more specific, raw aluminum production decreased by 8 percent to approximately 774,000 tonnes in the third quarter. Over the initial three quarters of the year, the total output amounted to just over 2.3 million metric tons, indicating an 11 percent decrease compared to the previous year. The production of primary aluminum experienced a notable decline of 48 percent from January to September, with smelters producing around 147,000 tonnes. This marks a substantial drop from the 391,000 tonnes produced during the same period in the prior year (Q1-Q3 2021).
The further processing of aluminum into semi-finished products also encountered an 8 percent reduction in the third quarter, resulting in an output of nearly 607,000 tonnes. Among manufacturers of extruded products, the decline was even more pronounced, at 17 percent, while the production of rolled products decreased to a comparatively milder extent, by 6 percent. In total, 1.8 million tonnes of semi-finished products were manufactured in Germany during the first three quarters of the year, indicating a 10 percent decrease.
Rob von Gils, the President of Aluminium Deutschland (AD), expressed concerns, stating, “It makes me think when three-quarters of our industry currently assess the competitiveness of Germany as an industrial location as low or very low – this is what the survey that we regularly carry out in the association says. For the vast majority, energy prices remained the most important issue. Many also expect further tension in the energy markets in the winter months. At the moment, we don’t see any light at the end of the tunnel.” The economic headwind is currently hitting the industry hard – in addition to high energy prices. As a basic industry, the aluminum industry supplies many sectors of the economy. Orders have literally collapsed, particularly in the construction industry. However, demand in the automotive industry is also weak.
Source: Alircle
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