By P Gosselin
What leaves as soon as, won’t come once more. Whereas power costs in Europe are going via the roof, they continue to be average within the USA. This may have severe penalties for energy-intensive industries.
The Wall Avenue Journal (paid article) is already rubbing its palms collectively for the US economic system. It’s twice useful: excessive costs for LNG exports and new jobs sooner or later. It’s Win/Win – Lose. One of many losers for Germany is Areclor-Mittal. Now they’re turning down the primary blast furnace. Right here, too, the USA is profiting. The FAZ reviews:
Arcelor-Mittal, the world’s largest metal producer, is shutting down two manufacturing services on the finish of September as a consequence of excessive power costs in Germany. “Till additional discover,” one of many two blast furnaces on the plate metal web site in Bremen will likely be shut down. And the direct discount plant on the Hamburg lengthy metal mill can also be to be shut down. Along with the already excessive prices for fuel and electrical energy, the fuel surcharge deliberate from October will place an additional burden on the competitiveness of energy-intensive crops, it says in justification. ‘With a tenfold improve in fuel and electrical energy costs, which we needed to settle for inside a couple of months, we’re not aggressive in a market that’s 25 % equipped by imports,’ Germany CEO Reiner Blaschek is quoted as saying in an announcement from Arcelor-Mittal.
In an effort to keep away from fuel consumption in Hamburg, the precursor iron is now being bought from America so as to have the ability to proceed manufacturing – extra cheaply, however with a better CO2 footprint. Lowered work hours can also be being launched on the manufacturing websites in Duisburg and Eisenhüttenstadt because of the tough scenario.”
