Spain’s electrical metal mills minimize output amid hovering energy costs

MADRID, March 10 (Reuters) – Spanish metal makers have minimize output at their electric-powered mills after energy costs skyrocketed to file highs following Russia’s invasion of Ukraine.

Andres Barcelo, the final director of nationwide metal producers’ affiliation UNESID, instructed Reuters on Thursday that the metal mills halted manufacturing on the afternoon of March 8.

Since then, many have been producing at a lowered charge to decrease prices, UNESID and a few native metal producers stated.

Electrical energy prices have surged in tandem with gasoline costs following Russia’s invasion of Ukraine, making a headache for power-intensive industries like metal, as producers are unable to switch all the rise in prices to their clients.

Cautious of signing long-term contracts with utilities, which might lock in present excessive costs, metal makers have resorted to purchasing electrical energy on the spot market the place costs are at file highs, a spokesperson for ArcelorMittal (MT.LU) stated.

Because of this, ArcelorMittal has stopped working throughout peak hours, or about one third of the time, at its Olaberria plant within the Basque Nation, the spokesperson stated.

The corporate will even prolong a scheduled closure of one other plant in close by Sestao for 10 days till March 23, and plans to shut a 3rd plant in Gijon, in Asturias, between March 24 and 28.

Spanish stainless-steel maker Acerinox (ACX.MC) stated it had halted manufacturing at its solely plant in Spain, in Algeciras on the southern tip of the nation, whereas privately held producer Celsa, whose Barcelona mill has an annual capability of two.5 million tons, additionally minimize output, citing insufferable power prices.

“We’re assembly the calls for of our clients however our furnaces are working at totally different hours to adapt to electrical energy costs,” a Celsa spokesperson stated.

Different privately held metal makers equivalent to Megasa and Siderurgica Balboa additionally halted output a minimum of partially.

To guard metal makers, UNESID has requested the federal government to vary laws to decouple electrical energy from worldwide gasoline costs.

Reporting by Christina Thykjaer and Inti Landauro
Enhancing by Nathan Allen and Mark Potter

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