German aluminium producer Speira becomes the next in a long line of European aluminium producers to draw down capacity due to high power prices, as it announced that it would curtail half of its aluminium output in October.
In a press release, Speira sang a common refrain, chalking up rising power prices as the culprit.
“Going forward smelting production will be reduced to 70,000 tonnes of primary metal per year. This decision has been taken in consequence to the rising energy prices in Germany.”
“We are facing similar challenges as many other European aluminium smelters,” the statement continued. “Energy prices have reached too high levels over the last months, and we don´t foresee those falling in the short-term future.”
Speira said the curtailment of output would begin next month and is expected to be finished by November. The firm said it does not expect to conduct layoffs, however.
“Speira will replace the curtailed liquid production with external metal supplies,” the statement concluded.
To date, European aluminium smelters are estimated to have cut between 800 thousand and 900 thousand metric tons per annum of production this year due to the recent spike in energy prices. Experts fear that this winter could see that total almost double, leading to supply shortages and higher prices, especially for those in the transport, construction, and packaging sectors.