Glencore Reopens Zinc Smelter in Nordenham Amid Fluctuating Zinc Prices
Glencore has resumed operations at its Nordenham zinc smelter in Germany. The facility, which ceased operations in November 2022 due to surging electricity costs across Europe, is now back in action as of the end of 2023. This move comes amid fluctuating zinc prices on the London Metal Exchange (LME), which saw a drop to their lowest in seven months at less than $2280 per tonne in early February 2024, only to rebound by more than 10% subsequently.
The specific details regarding the current capacity utilization of the Nordenham plant remain undisclosed. Similarly, Glencore has yet to confirm if the smelter will aim to reach its previous annual production targets of 165,000 tonnes of zinc and zinc alloys. This restart is set against a backdrop of rising electricity tariffs that have been challenging the European non-ferrous metals industry since October 2021, with a significant hike observed in March this year. These increasing costs have led to the closure of several aluminium and zinc smelters across the EU, raising concerns about the permanent cessation of operations for some facilities.
Kuhn Demesmaeker, the chairman of Glencore's supervisory board, highlighted that the temporary shutdown was a response to the adverse external economic conditions impacting the business and the broader European economy. The decision to restart the plant indicates a strategic move by Glencore to navigate through these challenges, with the company closely monitoring the macroeconomic environment for further developments. In addition to zinc smelting, Nordenham also hosts a refined lead production facility, acquired by Glencore in May 2020 through a bankruptcy buyout.
