Rising Power Costs Threaten UK Aluminium Industry Growth
London: The aluminium sector in the United Kingdom is facing rising electricity costs that are limiting its ability to benefit from a global supply shortage, despite increased international demand for the metal.
Industry sources indicated that disruptions affecting aluminium smelters in the Gulf, alongside shipping constraints through the Strait of Hormuz, have contributed to tightening global supply and driving prices higher.
The United Kingdom’s primary aluminium smelter in Fort William, Scotland, in addition to recycling facilities in England and Wales, has witnessed growing demand. However, industry representatives stressed that high energy costs remain a key challenge to expanding production.
Make UK, a manufacturers’ organization, reported that industrial electricity prices in Britain were about 50 percent higher than in France and around one-third higher than in Germany last year. The organization called for faster implementation of measures aimed at reducing electricity costs for energy-intensive industries.
Producers also highlighted the importance of ensuring price stability for electricity over defined periods to support industrial competitiveness and facilitate the transition to cleaner energy sources.
The aluminium sector in the UK supports around 17,000 jobs and contributes approximately £2 billion annually to the national economy.
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