8,643.88 TRY BIST 100 BIST 100
4.87 CNY CNY CNY
34.34 USD USD USD
37.42 EUR EUR EUR
0.13 CNY CNY/EUR CNY/EUR
45.07 TRY Interest Interest
75.11 USD Fossil Oil Fossil Oil
32.50 USD Silver Silver
4.45 USD Copper Copper
102.15 USD Iron Ore Iron Ore
374.00 USD Shipbreaking Scrap Shipbreaking Scrap
3,026.19 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

Türkiye's iron and steel export value was 7.8 billion USD in January-September period

Tuesday, November 5, 2024

European Commission approves EUR 724 million in funding towards Denmark

Tuesday, November 5, 2024

Indonesia's coal production targets under threat

Tuesday, November 5, 2024

AM/NS India is set to develop one of India’s most substantial steel projects

Monday, November 4, 2024

Cleveland-Cliffs completes acquisition of Stelco

Monday, November 4, 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