• 4 minutes Energy Armageddon
  • 6 minutes How Far Have We Really Gotten With Alternative Energy
  • 10 minutes Russia Says Europe Will Struggle To Replace Its Oil Products
  • 1 hour GREEN NEW DEAL = BLIZZARD OF LIES
  • 16 hours Reality catching up with EV forecasts
  • 8 days "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 2 days 87,000 new IRS agents, higher taxes, and a massive green energy slush fund... "Here Are The Winners And Losers In The 'Inflation Reduction Act'"-ZeroHedge
  • 7 days A Somewhat Realistic View of the Near Future for Electric Vehicles Worldwide
  • 13 days The Federal Reserve and Money...Aspects which are not widely known

World’s Second-Largest Steelmaker Closes European Plant

The world’s second-largest steelmaker, ArcelorMittal, is the latest industrial company to announce a plant closure in Europe due to soaring gas and energy prices. 

ArcelorMittal will shut one of its two blast furnaces at its steelworks site in Bremen, Germany, from the end of September until further notice, due to the “exorbitant rise in energy prices,” the company said in a statement on Friday. 

The high energy prices are undermining the competitiveness of steel production and the company is taking this step in Germany because it cannot operate all plants economically, ArcelorMittal said.

ADVERTISEMENT

The steel giant also cited weak market demand, a negative economic outlook, and persistently high CO2 costs in steel production as reasons for its decision.  

“The high gas and electricity costs are putting a heavy strain on competitiveness. On top of that, from October onwards, there will be the German government's planned gas levy, which will further burden us,” ArcelorMittal Germany’s CEO Reiner Blaschek said. 

ADVERTISEMENT

Blaschek called on politicians to urgently take action to “get energy prices under control immediately”.  

Aluminum smelters in Europe have also been closing in recent weeks, due to sky-high energy prices.  

In Germany, one of every six industrial companies feels forced to reduce production due to high energy prices, a survey by the Association of German Chambers of Industry and Commerce, DIHK, showed at the end of July. Nearly a quarter of the companies forced to reduce production had already done so by end-July, and another one-quarter are in the process of scaling back production due to sky-high energy prices, according to the survey of 3,500 companies from all sectors and regions in Germany. 

The energy-intensive industries and firms are particularly hit, as 32 percent of the companies plan to or have already started to reduce production and even halt entire production lines, the DIHK survey showed.  

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

ADVERTISEMENT


ADVERTISEMENT


Leave a comment
  • DoRight Deikins on September 02 2022 said:
    Don't blame them. I'm surprised that they've been running as long as they have.

    So now China sells discounted Russian gas to Europe for a huge profit, and now they will steal the metal market as well. Soon the chemicals and plastics will start shutting down.

    Adios Europa.
  • George Doolittle on September 02 2022 said:
    Entire European economy to include even all of Russia but Great Britain as well is in free fall. Looks like yet another Argentina only with World War 3 and tactical and strategic nuclear weapons as part of the nightmare now. Quite the collapse in energy demand all of a sudden there would be an understatement yes indeed Industry itself is now in a State of Collapse save for those who have material and massive operations in the USA.

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News