Spain-based steel producer Sidenor Group has announced that it has halted production at its Basauri plant for 20 days, which is 30 percent of the scheduled productive days, in the period up to the end of this year amid exorbitant electricity prices.
Sidenor stated that it is paying €227 per MWh in October, while it paid just over €60 per MWh last year. The company forecast that it would have to pay €284 per MWh in November and December. The increase in electricity prices prevents the company from maintaining its current production rate, impacting on its production costs by more than €200/mt.
According to the company’s statement, other measures will be necessary if the current high electricity prices continue, as this halt will not solve the problem. The halt of production will also progressively affect the rest of the company’s plants.