SHANGHAI, Aug 24 (SMM) - Futures prices of natural gas in Europe surged as Russia cut or even suspended at a point its natural gas exports. As a result, the electricity prices in Europe hit record highs almost every day, with electricity prices in German jumping above 700 euros for the first time in history. Zinc and aluminium smelting capacity in Europe has been halved over the past year due to high energy prices, and it is expected to drop further in the future.
The research report of CITIC Securities suggested that since mid-July 2022, the domestic aluminium prices have rebounded nearly 10%, which has led to an improvement in the profitability of aluminium smelters. The growth rate of aluminium supply slowed down significantly due to factors such as overseas energy crisis, unexpected production reduction of domestic aluminium smelters, and the shortage of power supply. Although the demand for aluminium is at the seasonal low, it is likely to rise driven by the increasing consumption in the fields of automobile, photovoltaics, and power grid. Therefore, the aluminium prices are expected to grow in the future.
