Europe’s energy crisis has claimed another victim in the power-hungry metals industry, with Norsk Hydro ASA planning to shutter an aluminum smelter in Slovakia at the end of next month.
Aluminum is one of the most energy-intensive metals to produce, and the closure of the Slovalco facility adds to growing signs of stress in Europe’s industrial economy as power prices surge to record highs. The region had already lost about half of its zinc and aluminum smelting capacity during the past year, mainly as producers dialed back output. Hydro and others are now moving to shut down plants entirely.
READ: Zinc Surges as Trafigura-Owned Smelter to Halt Production
Europe’s energy crisis is contributing to volatile trading on the London Metal Exchange, as traders assess a slew of supply losses against the rising risk that runaway inflation and tightening monetary policy will hammer demand for industrial metals in some of the world’s top economies. Aluminum initially jumped as much as 2% Wednesday before paring gains as European markets opened on a downbeat note.
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