Soaring energy prices have caused some European steel companies to implement peak shifts and stop production
Recently, ArcelorMittal (hereinafter referred to as ArcelorMittal)’s steel branch in Europe is under pressure on energy costs. According to foreign media reports, when the electricity price reaches its peak in the day, Anmi’s electric arc furnace plant producing long products in Europe will selectively stop production.
At present, the European spot electricity price ranges from 170 Euros/MWh to 300 Euros/MWh (US$196/MWh~US$346/MWh). According to calculations, the current additional cost of the steelmaking process based on electric arc furnaces is 150 Euro/ton to 200 Euro/ton.
It is reported that the impact of this selective shutdown on Anmi’s customers is not yet obvious. However, market analysts believe that the current high energy prices will continue at least until the end of this year, which may further affect its output. In early October, Anmi informed its customers that it would impose an energy surcharge of 50 euros/ton on all products of the company in Europe.
Some electric arc furnace steel producers in Italy and Spain recently confirmed that they are implementing similar selective shutdown programs in response to high electricity prices.