As rising energy prices reduce profit margins for businesses across Europe, British Steel has increased prices on some products. According to a representative on Tuesday, structural sections, a type of steel used in construction, will be subject to a hike of £100 ($121) per tonne from one of the leading producers in the UK. According to a March article in The Times, the corporation has previously raised the cost of the same products by $250 per tonne.
Europe’s heavy industry is collapsing under rising electricity prices, which are particularly painful for enterprises that use a lot of energy. Tuesday saw an all-time high for regional benchmark power prices, and nations throughout Europe are preparing for potential power shortages this winter after Russia reduced its gas exports due to the invasion of Ukraine.
Some industries have responded by decreasing supply; zinc company Nyrstar stated Tuesday it would suspend output at a sizable smelter in the Netherlands. Others, like British Steel, are attempting to pass on rising electricity costs to customers. However, that may become more challenging as European steel prices decline in anticipation of weaker regional economic activity hurting demand.