Aluminium & Zinc Plants Shutting Down in Europe
Updated by Elli Nikolaou – National Category Lead FM & Construction
Further supply chain update, emanating from the global energy crisis – Astronomical increases in energy prices and rising inflation are crippling supply and demand of industrial metals (especially aluminium and zinc) in some of Europe’s leading economies. The London Metal Exchange reported last week zinc prices soaring to their highest levels in two months as one of Europe’s biggest zinc smelters in Netherlands (Nyrstar) announced that they would halt production from 1st September 2022 until further notice, threatening to cripple heavy industries as the plant accounts for 2% of the global output.
Zinc and aluminium smelting capacity will be further affected due to the closure of the Norsk Hydro aluminium plant in Slovakia (a major supplier within Europe) and strike action in Hydro’s aluminium plant in Norway (which commenced on Monday 22nd August).
With electricity prices rising to an all-time high this week, and aluminium and zinc production requiring substantial levels of energy, industrial metal plants have been operating at a loss thus rendering a move to reduce and, in some cases, shut down production unavoidable”.
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