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Energy risk escalates for European metal producers

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With no clear near-term solution for the energy crisis in Europe, there is a tangible risk that metal producers will be forced to close. There have already been casualties among primary producers, and the prospect of a long-lasting energy crunch raises the risk of further curtailments. Aluminium and zinc producers have been the first to reduce production as a direct consequence of high energy costs. Steel mills also reduced production due to high production costs and a weakening market environment. So far copper producers have been the least impacted, as energy flexibility and healthy revenues from sulphur by-products and energy credits have put them in a better position to survive high energy costs.

Table of contents

  • Executive summary
  • Little chance that the energy markets will normalise anytime soon
  • Not all smelters have the same energy needs
  • Conclusions

Tables and charts

This report includes 5 images and tables including:

  • Electricity prices in Europe - Higher for longer
  • Revenue, 2022 cost and margins, US$/t
  • Copper: Energy cost - electricity and fuels by technology
  • Global aluminium production at risk
  • Zinc: Energy costs change by region and technology, 2019-2022

What's included

This report contains:

  • Document

    Energy risk escalates for European metal producers

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