Germany’s ’10 times increase in gas and electricity prices’ is boosting the industry – Strong growth thanks to that?
Via P Gosselin
What goes away once, will not come again. While energy prices in Europe are skyrocketing, they remain moderate in the US. This will have serious consequences for energy-intensive industries.
The The Wall Street Journal (paid articles) have been rubbing against each other for the sake of the US economy. It benefits twofold: high prices for LNG exports and new jobs in the future. It’s Win/Win – Lose. One of the losers for Germany was Areclor-Mittal. Now they are abandoning the first blast furnace. Here, the United States is also profiting. The Report of FAZ:
Arcelor-Mittal, the world’s largest steel producer, will close two production facilities at the end of September due to high energy prices in Germany. “Until further notice,” one of the two blast furnaces at the plate smelter in Bremen will be shut down. And the direct reduction plant at the Hamburg long steel mill will also cease operations. In addition to already high gas and electricity costs, the gas surcharge planned from October will place additional burdens on the competitiveness of energy-intensive plants, it explained. ‘With one 10 times increase in gas and electricity priceswhich we have had to accept within a few months, we are no longer competitive in a market powered by 25% imports,’ German CEO Reiner Blaschek is quoted as saying in a statement. from Arcelor-Mittal.
To avoid gas consumption in Hamburg, iron precursors are currently being purchased from the US so that production can continue – at a cheaper price, but with a higher CO2. Reduced working hours are also being applied at production sites in Duisburg and Eisenhüttenstadt due to the difficult situation. “
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