German aluminium production falls in Q1

Rob van Gils. Image: Aluminium Deutschland

In the first quarter of 2023, the aluminium industry in Germany continued to fall. Metallurgical production has fallen by more than half, but processing is also significantly lower than in the previous year.

AD president, Rob van Gils, emphasised: “The aluminium industry in Germany is about to bleed dry. We have to prevent that, because aluminium is and will remain a transformation metal. Until inexpensive green energy is available across the board, we need a transformation or industrial electricity price at an internationally competitive level as quickly as possible. We welcome the fact that the debate has finally been launched. The previous proposals are a start. The aluminium-specific characteristics must definitely be included in the considerations.”

The production of raw aluminium fell by 12% in the first quarter – a good 783,000 tonnes were produced. The primary aluminium smelters recorded a decline for the sixth quarter in a row – at 48,400 tonnes, their production volume was 62 percent below the level before the energy crisis (Q1 2021).

The aluminium semi-finished products processing sector also posted a quite significant minus (-8%) in the first quarter with a good 610,000 tonnes. The decline among manufacturers of extruded products, at -13% to just under 142,000 tonnes, was greater than among producers of rolled products, at -7% (around 469,000 tonnes).

Van Gils continued: “The weak demand from important customer sectors, especially the construction industry and mechanical engineering, means that the capacity utilisation of the plants in this country is lower. In addition, we are currently observing strong import pressure from countries where competitors are benefiting from significantly lower energy costs. We are in global competition and around 60% of the world’s aluminium is already produced in China – with a CO2 footprint three times higher than in Europe. In order to become more independent and at the same time more sustainable, we have to strengthen domestic production. This is the only way the Green Deal can succeed!”

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