Morning Bites (part 2)

⛏Norsk Hydro plans to halt primary aluminium production at its Slovalco smelter in Slovakia by the end of September due to rising energy costs. The smelter’s capacity accounts for 2% of Europe’s primary aluminium output (0.3% of global). We note that due to soaring electricity costs there is a risk of further smelter stoppages in Europe, which might be a positive factor for aluminium prices, given Europe accounts for 12% of global primary aluminium production. According to industry reports, power shortages also led to smelter stoppages in China, with 460kt/a being shut down. In addition, roughly 500kt/a were stopped in the US for the same reasons. This brings the total closing capacity to more than 1,700kt/a (~3% of global supply)

#aluminium