Speira said it will shut its Rheinwork aluminium plant in Germany due to challenges in the energy market.

The resilience of households and corporations combined with falling energy prices allowed the EU to avoid a recession in 2022. In its latest outlook, the European Commission forecasts that the EU will grow at 0.8-0.9% in 2023 vs 3.5% last year...time will tell. The main headwinds are inflation and tighter monetary policy combined with the perduring Ukrainian conflict overshadowing sentiment and weighing on expectations for energy prices.

While energy prices in Europe have retreated from their highs, energy-intensive industries such as aluminium and steel are still facing rough waters which are not expected to calm in 2023. A staggered regional economic recovery will come with further challenges in Europe. Another year of potential shutdowns, while economies rebound elsewhere, will put pressure on Europe and potentially see the continent lose market share in certain supply chains.