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Europe's smelters need long-term price protection, Trafigura CEO says - Finance news and analysis from Global Banking & Finance Review
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Europe's smelters need long-term price protection, Trafigura CEO says

Published by Global Banking & Finance Review

Posted on May 20, 2026

1 min read

· Last updated: May 20, 2026

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Finance Metals EU Policy Commodities industry

Trafigura CEO Urges Long-Term Price Protection for European Smelters

European Smelters Face Challenges Amid Global Competition

By Julia Payne

Calls for Long-Term Price Protection

BRUSSELS, May 20 (Reuters) - European smelters need "life support" such as long-term price protection or price floors to keep operating and compete with top-end Chinese plants, Trafigura's CEO Richard Holtum told a conference on Wednesday.

Importance of Energy-Intensive Smelters

Energy-intensive smelters are critical to processing strategic minor metals such as antimony needed in defence, Holtum said. The EU and Western allies are racing to diversify their supply chains for such metals and reduce their over-reliance on China. 

Warning Against Delayed Action

"I hope the EU doesn't search for perfection and creates perfection in five years time and the smelting industry has gone," Holtum told the EIT Raw Materials Summit in Brussels.

Reporting and Editing Credits

(Reporting by Julia Payne; Editing by Andrew Heavens)

Key Takeaways

  • European smelters are under threat from cheaper, highly efficient Chinese plants and require policy-backed price support mechanisms to remain viable in the long term.
  • Strategic minor metals processing—especially antimony for defense—is critical to Europe, and losing smelters risks supply chain vulnerabilities amid EU efforts to diversify away from China.
  • Urgent action is needed; Holtum cautioned that waiting “five years for perfection” could mean European smelting capacity vanishes before effective support is implemented.

Frequently Asked Questions

Why do European smelters need long-term price protection?
European smelters require long-term price protection or price floors to remain operational and competitive with Chinese plants due to high energy costs.
What metals are European smelters critical for processing?
They are crucial for processing strategic minor metals such as antimony, which are important for the defence sector.
What is the EU doing to support its smelting industry?
The EU and Western allies are working to diversify their supply chains for strategic metals and reduce reliance on China.
Who made the call for price protection for European smelters?
Richard Holtum, CEO of Trafigura, made the call during the EIT Raw Materials Summit in Brussels.
What risk did Trafigura's CEO highlight about EU policy on smelting?
He warned that waiting too long to act could result in the loss of the European smelting industry.

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