Soaring energy prices jolt expectations of higher European aluminium premiums

Soaring European energy costs have stirred expectations for further increases in regional aluminium premiums heading into 2022.

Energy prices in major industrial European Union countries have increased significantly over the past month, making it more expensive to produce aluminium in the region.
The day-ahead average EPEX market price for Germany was at €196.21 ($220.45) per megawatt hour for Friday December 24, compared with a year-to-date average of €96.33 per MWh. The day-ahead average EPEX market price for France was at €319.53 per MWh, nearly triple the year-to-date average of €108.38 per MWh.
That surge has forced major smelters - such as Aluminium Dunkerque in France, which has an annual production capacity of 285,000 tonnes - to curtail 3.7% of its capacity, according to the smelter’s spokesperson. The smelter specializes in aluminium slab or ingot production.
Romanian aluminium producer Alro said the energy situation was “unsustainable” on Wednesday December 22.

“Regarding the news published in the Romanian press regarding the imminent closure...

Published

Justin Yang

Alice Mason

December 23, 2021

19:34 GMT

London