German aluminium industry faces unprecedented challenges as production decline persists

During the third quarter of the year, Germany witnessed a notable decrease in aluminium production, according to a report from the Aluminium Deutschland (German Aluminium Association).

In the smelters, the primary aluminium production volume dropped by nearly 50 per cent, and the manufacturing of semi-finished aluminium products saw a decline in the high single-digit percentage range.

Specifically, raw aluminium production decreased by 8 per cent to approximately 774,000 tonnes in the third quarter. Over the initial three quarters of the year, the total output amounted to just over 2.3 million metric tons, marking an 11 per cent decrease compared to the previous year. The production of primary aluminium saw a significant decline of 48 per cent from January to September, with smelters producing around 147,000 tonnes. This is a substantial drop from the 391,000 tonnes produced during the same period in the prior year (Q1-Q3 2021).

The further processing of aluminium into semi-finished products also experienced a notable 8 per cent reduction in the third quarter, resulting in an output of nearly 607,000 tonnes. Among manufacturers of extruded products, the decline was even more significant, at 17 per cent, while the production of rolled products decreased to a comparatively milder extent, by 6 per cent. In total, 1.8 million tonnes of semi-finished products were manufactured in Germany during the first three quarters of the year, indicating a 10 per cent decrease.

Rob von Gils, the President of Aluminium Deutschland (AD), “It makes me think when three-quarters of our industry currently assess the competitiveness of Germany as an industrial location as low or very low - this is what the survey that we regularly carry out in the association says. For the vast majority, energy prices remained the most important issue. Many also expect further tension in the energy markets in the winter months. At the moment, we don’t see any light at the end of the tunnel.” The economic headwind is currently hitting the industry hard – in addition to high energy prices. As a basic industry, the aluminium industry supplies many sectors of the economy. Orders have literally collapsed, particularly in the construction industry. However, demand in the automotive industry is also weak."