Metals industry working to maintain essential operations and withstand the COVID-19 crisis

 

Brussels, 31 March 2020: “The European non-ferrous metals industry’s priority when facing the COVID-19 health crisis is to safeguard its employees and help reduce the spread of the virus, while maintaining its operations to the extent possible for supplying essential value chains. Our companies are already experiencing unprecedented challenges which we expect to grow in the next weeks and months”, Guy Thiran, Director General of Eurometaux, said after a survey of the association’s membership revealed major growing impacts from the spread of COVID-19.

 

“Most important, our sector has taken early measures to protect our employees through implementing remote working where feasible plus mandatory hygienic measures and distancing requirements for workers on site. Its attention now turns to maintaining production operations wherever possible to keep supplying essential value chains including medical equipment, food packaging and critical infrastructure; all vital throughout the health crisis”.

 

More widely, between 30 and 70% of each base metal’s EU supply (aluminium, copper, nickel, lead, zinc) is directed to the transport and construction value chains. Both sectors are experiencing significant slowdown or complete production stoppage in Europe and globally due to COVID-19. The consequences on European metals producers will be severe, with some companies predicting a demand reduction of over 50% in the coming weeks.

 

Reduction in the sector’s activity and plant closures have been forced, and the economic situation is expected to worsen significantly due to wider Member State lockdowns severely limiting industrial activities. London Metals Exchange global metals prices are already at their lowest level since late 2015.

 

Eurometaux’s early survey of its membership also revealed that most companies are challenged by supply disruptions for primary and secondary raw materials, increased worker absenteeism, and major delays and costs for shipments through Europe. Smelters & refiners face a specific challenge given they operate continuous production processes which cannot be shut down without risk of damage.

 

Guy Thiran continued: “We call for EU leadership to support Member States in sustaining Europe’s production of key materials and preventing irreversible damage to entire value chains. The metals industry’s activities should be maintained for supplying medical equipment, food packaging and critical infrastructure. Policymakers can support its operations in the short-term through ensuring state aid, frictionless cross-border transport and a stable supply of essential raw materials. We’re committed to keep assisting the European institutions & national governments in their vital work to address both the health & economic impacts of COVID-19”.

 

Contact: Chris Heron, Communication & Public Affairs Director | heron@eurometaux.be | +32 (0) 493 18 89 63

 

About Eurometaux: Eurometaux is a trade association representing the collective European non-ferrous metals industry, including smelters, refiners, transformers and recyclers of all non-ferrous metals produced industrially in Europe. In total the industry employs 500,000 people across over 900 facilities, with an annual turnover of €120bn.