German aluminium industry: production declines, challenges

Aluminium displeasure The situation remains tough in the German aluminium industry

2024-06-28 Source: Aluminium Deutschland | Translated by AI 2 min Reading Time

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The German aluminium industry also recorded clear production declines in almost all areas in the first quarter of 2024, as analysed by Aluminium Germany.

Things continue to be rather tough in the German aluminium sector, as reported by Aluminium Germany. The usual issues are causing pressure, but also imports from Turkey. Here's more on this ...(Image: D. Metal enthusiast) — Things continue to be rather tough in the German aluminium sector, as reported by Aluminium Germany. The usual issues are causing pressure, but also imports from Turkey. Here's more on this ...
(Image: D. Metal enthusiast)

Rob van Gils, President of Aluminium Germany, stressed in view of the situation: "High energy costs and the overall tense economic situation in Germany continue to hit manufacturers hard." The demand from key customer sectors - especially from the construction sector - remains at a low level. According to van Gils, this is also due to the weak registration figures for electric cars, as a result of the federal government's overnight withdrawal of funding. Even the production of recycled aluminium declined. And this despite its importance for the decarbonisation of Europe and the associated market potential. From January to March, 685,000 tonnes of recycled aluminium were produced in Germany, representing a decrease of 7 percent, as expressed in figures.

Aluminum extrusion product manufacturers suffer particularly hard

In the first three months of this year, the volume of processed aluminium semi-finished product producers fell by double digits in some cases. In total, just over 571,000 tons were produced - a decrease of 6 percent. Among them, the manufacturers of rolled products recorded a comparatively moderate decline of -5 percent (falling to 448,000 tons). In contrast, the production of extruded products fell much more sharply, by 13 percent to just under 124,000 tons. Especially in the aluminium extrusion sector, German manufacturers are increasingly facing competitive pressure from third countries, particularly Turkey. In the first quarter of 2024, the market share of German manufacturers only reached just over a third.

Morally questionable primary metal source for the Turks

Today, as mentioned, the largest importers to Germany are aluminium manufacturers from Turkey. Their market share has risen to around 10 percent in recent years. Van Gils comments on this: "We do not shun competition and are in favour of free trade. The German industry depends on open markets like no other. But competition must be on fair terms." The flood of imports from Turkey at least raises questions about a level playing field. It is not without reason that the US has initiated an anti-dumping procedure. Government interventions could affect energy supply, financing conditions or tax relief. Turkish extruders also benefit from cheaper access to Russian primary metal, while German aluminium players have to make every effort to become independent of it. This alone is morally highly questionable for van Gils.

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