British steel company British Steel, which owns Scunthorpe, has introduced special surcharges effective October 1 to offset rising energy and transportation costs. Their sizes are 25 and 5 pounds per ton, respectively. (28.75 and 5.75 Euros)
The company says the cost of electricity rose "exponentially" in August and September. At the same time, current futures prices indicate that these costs may increase further in winter. In addition, the UK has a serious truck driver shortage.
The UK has indeed been more affected by the energy crisis than any other European country. Last year electricity cost British metallurgists around £50. There was a jump of around £200 per MWh, then around £200 in the second half of September, with spot prices measuring thousands of pounds per MWh during peak hours.
Indian group Tata Steel, which owns Port Talbot in the UK, said production costs have increased by £30 due to higher electricity costs. However, it has yet to impose any special surcharges on steel product prices for this reason.
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