Europe pulls back while China’s aluminum smelters resurrect

Jul 09, 2022
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In May 2022, China manufactured almost 3 million tonnes of aluminum which was a chart-buster. It states that the run rates are rising in the country. China’s yearly manufacturing is expanded by 3 million tonnes in the first few months of the year. In May, the operation rate reached almost 40 million hitting the highest record of the rates. It’s been an unfortunate event in Ukraine of Russia’s rage of war resulting in a European power crisis unraveling, China eases the power price. The energy crisis outside China has made the manufacturing rate go down by 450,000 tonnes. 

Energy networks need at least 18Mt of aluminum to go green in 2030 as calculated by the experts. But the crisis in energy production doesn’t seem to be compromising. 40% of European aluminum primary production is the cost of accounts for power sources. Due to many regulatory and economic problems, the prices have raised up to 400% since the summer of 2021. Half of the Aluminum smelters in Europe have either reduced or stopped their production by now. It will affect the value chain really badly if the actions are not properly taken on behalf of this. They cannot contribute to the green energy transition if it goes on like this. It will lead to more destruction.