ArcelorMittal, the largest steel producer in Europe, has introduced a surcharge of EUR 50 per tonne on its steel products due to the sharp rise in electricity prices. This was reported by Argus Media.
A shortage of natural gas has led to skyrocketing energy prices across Europe, driving up energy costs across all industries, especially energy-intensive industries such as steel.
Smelters that use electric arc furnaces have been hit hardest, as electricity accounts for most of their costs. High steel prices and hedging have slightly reduced the losses to an industry that usually operates at low margins.
Previously it was reported that such companies as British steel and the European branch of the Indian metallurgical group Tata Steel introduced steel premiums due to the rise in energy prices.
Recall that high electricity prices prevented another UK company, Liberty Steel, from restarting steel production in Rotherham.