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Overall Aluminium Industry
Iceland is one of the most important nations producing aluminium. The country is a critical element in the global economy for this metal. Alcoa, Century Aluminum, and Rio Tinto - three major international manufacturing corporations - operate aluminium smelters on this island. Renewable energy resources provided the bedrock for the creation of the aluminium industry in Iceland. Energy costs remain critical to the industry.
"The hot metal production was 831 thousand tonnes aluminium in 2020," stated Mr. Pétur Blöndal, Managing Director of Samál, Icelandic Association of Aluminium Producers. "In a normal year, the production is around 870 thousand tonnes. The main reason for lower production can be traced to Rio Tinto only producing with 85% capacity. It was negotiating energy prices with Landsvirkjun, the state energy company, and maintained the price was not competitive." As noted below, a new energy contract was signed between the two firms in February of 2021.
Mr. Blöndal indicated that an increase in aluminium production is likely at the ISAL smelter of Rio Tinto, but "...besides that, there are no foreseeable increases in production."
While countries throughout the world import aluminium from Iceland, most exports of aluminium from Iceland go to nations within the European Economic Area, consisting of the member nations of the European Union and three countries of the European Free Trade Association.
European Aluminium, a trade organisation that includes more than 80 businesses and national organisations involved in the aluminium industry, confirmed that "Norway and Iceland, while being part of the economic area with the European Union, are the largest exporters of primary aluminium to the European Union."
The value of aluminium exports from Iceland was (US) $1,802,062,000 in 2019, according to the International Trade Centre. The Netherlands was by far the largest importer of aluminium from Iceland; imports to the Netherlands amounted to (US) $1,074,160,000 in 2019. Spain, which imported (US) $301,384,000; the United Kingdom, which imported (US) $104,090,000; Germany, which imported (US) $99,844,000; and France, which imported (US) $77,581,000 worth of aluminium from Iceland rounded out the top five export markets for Iceland. These five nations collectively imported more than 90% of all of aluminium exported by Iceland.
Other top importers of aluminium from this North Atlantic nation included Hungary, Canada, China,...