Europe's Largest Steel Producer Suffers Losses Due to Gas Prices
OREANDA-NEWS. The Dutch steelmaker ArcelorMittal, the largest in Europe, was forced to restrict production at some of its factories due to too high energy costs. The Financial Times writes about this with reference to the company's statement.
The cost of energy in Europe is related to gas prices, which in recent months have been at record levels, several times higher than previous highs. As a result, the output of a number of enterprises has become unprofitable.
ArcelorMittal suffered a hit in the production of products used in the construction sector. The manufacturer has introduced short selective breaks in the operation of electric arc furnaces. At the same time, the company believes that such measures will not have a significant impact on production volumes and will not lead to a shortage of products on the market.
A week ago, it became known that ArcelorMittal introduced a surcharge of € 50 per tonne for buyers, explaining that it can no longer cope with the rise in energy prices alone. The company promised to return to the usual prices after the cost of energy resources normalizes. Other European metallurgists have resorted to the same policy, including the British Liberty Steel and British Steel, as well as the Spanish Celsa.
Earlier, Bohemia Energy, one of the largest Czech electricity and gas suppliers, announced that it would suspend supplies due to a sharp rise in prices on the wholesale market. The company serves about 900 thousand clients.