What a Greek Eurozone exit means for aluminium producers

As Greece edges closer to defaulting on 1.6 billion euros of loans from the International Monetary Fund, Metal Bulletin’s Jethro Wookey considers whether the country’s aluminium producers and converters could benefit from a Eurozone exit.

If Greece again adopts the drachma as its currency upon its exit from the Eurozone, that currency would initially be heavily devalued against the euro. This would mean that domestic costs for exporters would fall in comparison to their euro- or dollar-based revenues. Among them are Greece’s two aluminium companies – producer Aluminium SA, owned by the Mytilineos Group, and rolling company Elval, owned by Viohalco. Both are big exporters and would see the value of those exports increase sharply should Greece revert to the drachma. “For exporters like Elval and Aluminium SA, the impact will be quite positive,” a source in the Greek aluminium market said. There are parallels elsewhere: Rusal's cost...

Published

Jethro Wookey

June 30, 2015

12:43 GMT

London