UK steelmakers warn industry on possible crisis amid soaring energy prices

Tuesday, 12 October 2021 16:04:33 (GMT+3)   |   Istanbul
       

The UK steel industry has warned of an approaching crisis amid higher energy prices, which may force plants into shutdowns, increase emissions and disrupt supply chains, according to Reuters.

Energy prices have increased in Europe amid a shortage of natural gas, bolstering prices paid by major plants smelting steel. The trade association UK Steel stated that these high electricity prices will lead to smaller profits and added that the demand for electricity and gas will increase in winter, triggering further rises in the prices. The possible shutdowns of plants will create negative consequences for steel supply and jobs. The association called on the UK government to provide a fixed amount of energy capacity at a competitive price to preserve the country’s economy. Kwasi Kwarteng, secretary of state for business, energy and industrial strategy of the UK, said that the government is carrying out studies to find a way to support industries affected by higher gas prices.

Meanwhile, Spain-based Sidenor is halting production at its Basauri plant for 20 days amid exorbitant electricity prices, as SteelOrbis previously reported.


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