Insight
Energy risk escalates for European metal producers
Report summary
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:
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