German metal company files for insolvency

German aluminium company Oetinger, one of the largest buyers of aluminum scrap and a secondary aluminium producer with a capacity of 300kt/yr, has filed for insolvency. It is thought administrators will be trying to save the company rather than dissolve it, as it is the largest foundry producer in Europe.

The news of Oetinger’s insolvency has led to a rise in ingot prices in the European secondary aluminium market, especially in the UK. However, given that summer is normally a quiet period for the industry, when plants generally shut down and carry out maintenance, most UK producers do not have the spare capacity to meet sudden demand from continental customers.