In response to rising energy prices, aluminum plants in Europe began shutting down production, while Russia and China increased imports. Representatives of the French aluminum industry say the EU-backed price cap on Iberian gas has created unfair competition. These representatives are also seeking anti-dumping action against Spain. The agreement is provisional and is valid until May 31, 2023.
This spring, Spain and Portugal reached an agreement with the European Commission to exclude the Iberian Peninsula from EU electricity market regulations. The agreement establishes a temporary mechanism to limit gas prices to an average of 50 euros per megawatt-hour until the end of May, cutting electricity prices for many Spanish and Portuguese consumers by half.
The European Commission approved the measures, saying they would reduce costs for Iberian consumers while “minimizing competitive distortions” and “affecting the trading environment to the detriment of the common good. However, the French aluminum industry does not share this view.
Cyrille Mounier of the French Aluminum Federation said that as a result of these measures, especially for aluminum used in the construction industry, “French customers are going to Spain for supplies. To stop what he sees as unfair competition within Europe, Mounier called for “anti-dumping action against Spain.
Anti-dumping measures are border controls imposed on imports from exporters when their dumping causes harm to domestic producers of the good or foreign exporters of the good. Spain’s Minister of Ecological Transition Teresa Ribera said she was not aware of the allegations.
She added that the price of Russian gas before the war and the French government’s participation in the electricity market have helped reduce energy spending in Germany’s power-intensive industries. The so-called ARENH program, which provides industrial producers in France with less expensive nuclear energy at a fixed price of 42 euros per megawatt hour, has provided them with a certain amount of electricity, but it is not considered sufficient to meet the needs of aluminum manufacturers.
Post time: Oct-08-2022