US coal prices have jumped to their highest level since 2009 as miners attempt to keep pace with the surging demand for the fossil fuel. Demand for coal usually rises significantly during the winter months. With most coal sold under long-term contracts, the sudden rush for the remaining supplies can prompt these sharp rises.
The metals industry within Europe is set to face another wave of closures unless the EU makes significant steps to address the continually rising cost of energy, Eurometaux, a non-ferrous metals association, has warned.
So far, more than half of the EU’s aluminium and zinc smelters have reduced capacity or have closed temporarily, with silicon production also cut as a result of record power prices and squeezed supplies. This, in turn has resulted in larger industrial consumers, including automotive and electronics companies, turning to China and the US to fill the gap.
“Without stronger EU and member state action, there is a real risk of further curtailments and closures in our sector, to the detriment of Europe’s strategic autonomy goals,” wrote Euromentaux in a letter addressed to European Commission President Ursula von der Leyen.
“The EU has temporarily lost 650,000 tonnes of primary aluminium capacity; about 30% of the total,” continued the letter. “Europe’s supply gap must be bridged with imports, often with a higher [carbon dioxide] footprint.”
Goldman Sachs estimated that 820,000 tonnes of primary aluminium capacity and 750,000 of primary refined zinc smelting capacity had been suspended across Europe in recent months. Aluminium Dunkerque, Europe’s largest producer of the metal, has cut production by 15% and Nyrstar, the zinc producer, has halved its output across three of its sites.
Industry briefing
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