Alro Slatina (BSE: ALR): European aluminum industry, affected by energy regulation costs

The European aluminum industry is strongly affected by energy regulation costs, local producer Alro claims, quoting a study by the Centre of European Policy Studies (CEPS). “Also SA welcomes the steps taken at EU level regarding the assessment of cost burden determined by European regulations in the aluminum industry. The Center for European Policy Studies (CEPS) has assessed the impact of these costs accumulated on the aluminum industry. The study concludes that impact of cumulative costs determined by EU regulations on the price-cost margin was 242% in 2011. Moreover, it shows that at EU level factories that buy electricity from the market recorded in 2012 the highest impact on costs, between EUR 179/ton and EUR 228/ton. For Alro, the renewable energy and cogeneration taxes alone represent this year EUR 18/MWh, the equivalent of an impact of approximately EUR 260/ton”, according to a company communique.