Primary aluminium production in Germany registers a drop of 5.6% during January-June 2019: Source says

According to Gesamtverband der Aluminiumindustrie (GDA), the federation of German aluminium industry, the first half of 2019 saw a mixed bag of business activity development. While primary aluminium producers and processors had to reduce production by 5.6 and 5.4 per cent respectively, aluminium semi-finished products manufacturers increased output by 1.9 per cent year over year.

Around 629,200 tonnes of raw aluminium were produced in Germany during January-June 2019, out of which 251,400 tonnes were of primary aluminium and 377,800 tonnes recycled aluminium.

Also, producers of aluminium extrusions reported a decline in production in H1 2019 to 282,400 tonnes. The production of metal powder, foil, and thin strip fell as well by 3.7 per cent and 5.1 per cent respectively. Production of tube, aerosol and other cans dropped even more sharply by 9 per cent, showed the data from the federation.

Expectations for the entire year are also muted. Marius Baader, Executive Director of GDA, explained: “The economic slowdown in our key industries is also reflected in the call-off figures so we are expecting production in our industry to decline.”

“However, this will be offset partly by activity in the construction industry, which is still good, and a pleasing development in the packaging sector,” Mr. Baader added.

Christian Wellner, Executive Member of the Managing Board, also expects demand for aluminium to grow globally and so across Germany. He said the German aluminium industry showed many instances of successful survival in the past owing to its high innovation potential even when the competition was at peak and demand was cold.

In the first six months of 2019, the output of other semi-finished aluminium products increased 1.9 per cent year on year to 1.27 million tonnes. In terms of volume, rolling mills accounted for the largest share of German aluminium semis production. The production of rolled products totalled at 979,900 tonnes, up 4.4 per cent compared to the same period last year.

“We are very concerned about the trade conflict between the USA and China and are keeping a watchful eye on developments,” explained Andreas Postler, Head of Economics and Trade Policy at GDA.

He concluded by saying, “There are other cyclical factors as well, such as the slowdown in global growth dynamics, an increase in the probability of an unregulated Brexit, a far-reaching structural change in the automotive industry, and these are having a negative impact on the economy. The German aluminium industry cannot detach itself from this development. That is why the mood in the industry is subdued for the time being.”