10,319.96 TRY BIST 100 BIST 100
4.49 CNY CNY CNY
34.99 EUR EUR EUR
32.25 USD USD USD
0.13 CNY CNY/EUR CNY/EUR
42.53 TRY Interest Interest
83.58 USD Fossil Oil Fossil Oil
29.64 USD Silver Silver
4.91 USD Copper Copper
117.33 USD Iron Ore Iron Ore
382.00 USD Ship Dismantling Ship Dismantling
2,467.82 TRY Gold (gr) Gold (gr)

Increasing gas prices hit the EU iron and steel industry

Iron and steel producers are in a difficult situation due to low product prices and high production costs.

Increasing gas prices hit the EU iron and steel industry

The price of gas in Europe exceeded $2,400 per 1,000 cubic meters, reaching its highest level since March. The reason for the increase in gas prices in Europe is the drought and the decrease in the supplies from Russia by 20%.

European producers found themselves between two market trends due to the energy crisis that has covered the entire continent; low prices for metal products and high production costs, including energy. Energy costs usually make up 25-30% of processing costs, but selling finished products at low prices wipes out companies' profits.

The share of blast furnace and converter technology in steel production in the EU is around 60%. Producers were stuck as high gas prices led to exorbitant increases in electricity prices.

The EUROFER warned that the decisions taken by the European Commission regarding Russian gas may lead to serious consequences for the steel industry. The association said the EU should avoid interruptions in gas supplies until new alternatives are available.

Comments

No comment yet.

Only +plus subscribers can access this content.

SUBSCRIBE now to share your thoughts on the markets and get more comments.
SUBSCRIBE If you already have an account Sign In

Most read news

How the CEO of Emirates Steel Arkan is Transforming Leadership

Saturday, May 18, 2024

Taiwan's Feng Hsin keeps prices stable

Thursday, May 16, 2024

US steelmakers set cautious growth expectations for 2024

Friday, May 17, 2024

Rebar prices fall in India

Friday, May 17, 2024

The new Dutch government is cutting climate funding

Friday, May 17, 2024
Follow List
Expand
Your watch list is empty

Add your favorite commodities for quick access and don't miss the latest price change news.


There are no news categories you follow
Edit Notification Preferences
E-bulletin subscription
Sign up to receive the latest news and daily iron prices by e-mail and sms
Become a Plus Subscriber Now!
Try it free for 3 days!
Subscribe Now
Neutral Prices
Be informed
Provincial Iron Prices
Comments and Analysis
Subscribe Now