The European Association of Metals (Eurometaux) has released a joint letter from 40 CEOs of European metal groups regarding rising energy prices.
According to the letter, in the last month several companies have had to announce indefinite closures amid higher energy prices, while producers are facing electricity and gas costs over ten times higher than last year, far exceeding the sales prices for their products.
The letter stated that Europe’s clean energy goals require a competitive and growing metals sector to ensure a secure supply of the extra raw materials needed to shift away from fossil fuels. “Europe cannot have a successful energy and raw materials strategy if its power and gas prices stay at today’s levels for a sustained period without relief. The long-term investment climate for all EU strategic metals operations and projects risks being decimated, and more closures will follow next year once companies are not protected by their 2022 hedging of the electricity price. Any further EU production loss will also increase global greenhouse gas emissions, due to replacement supply from more polluting regions,” the letter said.
Therefore, Europe’s non-ferrous metals producers are calling for emergency EU action to prevent permanent damage from rising electricity and gas prices. The producers stated that the EU should take temporary action with the aim to reduce the price of power offered to the market and improve the temporary state aid framework.