© Reuters. FILE PHOTO: Stainless steel tubes are stored ready to be made into exhaust pipes at the Eminox factory, during a post-budget visit by British Chancellor of the Exchequer Philip Hammond, in Gainsborough, Britain , October 30, 2018. Christopher Furlong / Pool via
LONDON (Reuters) – The UK steel industry lobby group warned on Monday of a looming crisis over soaring wholesale energy prices that could force factories to shut down expensive factories, stoke emissions and wreak havoc in supply chains.
A shortage in Europe had caused electricity and gas prices to skyrocket, triggering sharp increases in prices paid by people who heat their homes or for large, heavy industrial factories melting steel.
“These extraordinary electricity prices lead to lower or wiped out profits and therefore less reinvestment,” UK Steel, which is lobbying on behalf of the UK steel industry, said in a backgrounder.
“As winter approaches, demand for gas and electricity will increase, and prices may rise, making it impossible to manufacture steel profitably.”
As the West accepts massive government madness during COVID-19 lockdowns, investors increasingly fear the sharp price hikes will hit the world’s largest economies, making money more expensive, rocking companies in the red and eroding wages.
UK Steel said some factories may have to shut down production “for longer and longer periods with consequences not only for individual companies but also for UK steel supplies for the UK economy and jobs in the UK. United”.
Sudden shutdowns could damage equipment, increase costs and ultimately lead to “poorer environmental performance with higher emissions,” he said.
UK Steel has called on the government to help.
Britain could, he said, provide a fixed amount of capacity at a competitive price or virtual interconnection.
Unless the government helps, “the consequences will be dire for our industry,” he said.
On Sunday, Business Minister Kwasi Kwarteng said the government was seeking to support energy-intensive industries affected by soaring gas prices, saying it was a “critical situation”.
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