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Europe Loses Top Aluminum Supplier With Mozambique Smelter Idled

Ana Monteiro, Matthew Hill

1 min read

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⚡ Quantum Brief

South32 halted operations at its Mozambican aluminum smelter—Europe’s largest supplier—after failing to negotiate an affordable long-term power contract, effective immediately. The 25-year-old smelter, now on care and maintenance, follows Bahrain’s output cuts at the world’s biggest facility due to regional conflicts, further straining global aluminum supplies. Aluminum prices surged to 2022 highs this month amid tightening supply, compounded by geopolitical disruptions like the Iran war and energy cost pressures. Power costs were the primary driver, as South32 couldn’t secure viable terms with Mozambique’s state utility, forcing the shutdown despite the smelter’s strategic role in European supply chains. The closure intensifies market volatility, with analysts warning of prolonged shortages if energy and conflict risks persist, impacting industries from automotive to aerospace.

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Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000South32 Ltd. idled its Mozambican aluminum smelter, Europe’s biggest source of the metal, after talks failed to secure an affordable power supply deal beyond this month, tightening global supplies just as the Iran war prompted Bahrain to curtail output at the world’s biggest facility.South32 confirmed in a statement on Monday that it had placed the 25-year-old operation on care and maintenance. Aluminum prices this month have soared to the highest since 2022.

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Source: Bloomberg Markets

Website: https://feeds.bloomberg.com/markets/news.rss

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