World Energy Market
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Sami1234
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Sami1234
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Can you explain to us why electricity prices in Spain are so cheap compared to other European countries? In the end, the German taxpayer are the ones who pay the difference at least most of it.
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I cant but i guess the whole system is different there, maybe not as many speculators, or the whole grid is state funded in Spain, could have many reasons.
Sami1234
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Algeria could cut the gas to Spain at any time if the Spanish Gov company, Naturgy, does not give a clear answer to the the new contract.
Six in 10 British Factories at Risk of Going Under as Bills Soar
Soaring energy bills are threatening to put six in 10 British manufacturers out of business, according to a survey that lays bare the extent of the crisis facing the next prime minister.
MakeUK, the lobby group for UK factories, said that nearly half of manufacturers have experienced a jump in electricity bills of more than 100% in the past year.
“The current crisis is leaving businesses facing a stark choice,” the report said. “Cut production or shut up shop altogether if help does not come soon.”
Read More: Britain’s Factories Face Bleakest Winter Since the 1970s
The UK’s new prime minister will be announced on Monday, with Liz Truss expected to beat Rishi Sunak, her rival in the Conservative Party leadership race. The government is under intense pressure to announce a wider package of support to help consumers and businesses cope with an unprecedented surge in global energy costs.
Britain’s factory sector is already in decline, according to a purchasing managers’ index published by S&P Global this week. MakeUK’s survey said that 13% of factories now have reduced hours of operation or are avoiding peak periods, while 7% are halting production for longer stretches.
“Emergency action is needed by the new government,” said Stephen Phipson, MakeUK’s chief executive officer. “We are already lagging behind our global competitors.”
Bloomberg - Are you a robot?
www.bloomberg.com
Metal Plants Feeding Europe’s Factories Face an Existential Crisis
In the aluminum industry, closing a smelter is an agonizing decision. Once power is cut and the production “pots” settle back to room temperature, it can take many months and tens of millions of dollars to bring them back online.
Yet Norsk Hydro ASA is preparing this month to do exactly that at a huge plant in Slovakia. And it’s not the only one — European production has dropped to the lowest levels since the 1970s and industry insiders say the escalating energy crisis is now threatening to create an extinction event across large swathes of the region’s aluminum production.
The explanation lies in aluminum’s nickname: “congealed electricity.” The metal — used in a huge range of products, from car frames and soda cans to ballistic missiles — is produced by heating raw materials until they dissolve, and then running an electric current through the pot, making it massively power intensive. One ton of aluminum requires about 15 megawatt-hours of electricity, enough to power five homes in Germany for a year.
Some smelters are protected by government subsidies, long-term electricity deals or access to their own renewable power, but the rest face an uncertain future.
“History has proven, once aluminum smelters go away, they don’t come back,” said Mark Hansen, chief executive of metals trading house Concord Resources Ltd. “There is an argument which extends beyond employment: this is an important base metal commodity, it goes into aircraft, weapons, transport and machinery.”
As production drops, the hundreds of European manufacturers that turn metal into parts for German cars or French airplanes are left increasingly reliant on imports that could get costlier. Some buyers are also trying to avoid metal from Russia, which is usually a big supplier to Europe.
The industry says it urgently needs government support to survive. However, any measures like fixed price caps to keep power-hungry plants running may be difficult to justify while consumers face soaring power bills and the threat of rationing and blackouts looms.
The woes of the aluminum sector offer a striking example of what's playing out in Europe's energy-intensive industries: across the continent, fertilizer makers, cement plants, steel mills and zinc smelters are also shutting down rather than pay eye-watering prices for gas and electricity.
Most worryingly for the region's manufacturing sector: it may not simply be a case of shutting for the winter. Power prices for 2024 and 2025 have also soared, threatening the long-term viability of many industries.
At recent market prices, the annual power bill for the Slovalco smelter would be around two billion euros, according to Chief Executive Officer Milan Vesely. Slovalco decided to mothball the plant due to a combination of surging energy prices and a lack of emissions compensation that is available to smelters elsewhere in the bloc.
Restarting the plant — which could take up to a year — will only be possible through some combination of cheaper power, a sharp rise in aluminum prices, and additional government support, Vesely said in an interview this week at the site.
“This is a genuine existential crisis,” said Paul Voss, director-general of European Aluminium, which represents the region’s biggest producers and processors. “We really need to sort something quite quickly, otherwise there will be nothing left to fix.”
Combined with import tariffs that Europe’s struggling producers have fought hard to put in place, the rising cost of energy could leave manufacturers facing an increasingly large premium over prevailing international prices in order to secure supply, in a further blow to Europe’s competitive standing in the global industrial economy.
“There will be nothing left to fix”
Producers of other metals like zinc and copper are hurting badly too, but the vast amounts of power needed to make aluminum have made the sector particularly unprofitable.
In Germany, the power needed to produce a ton of aluminum would have cost roughly $4,200 in the spot market on Friday after topping more than $10,000 last month, according to Bloomberg calculations. The London Metal Exchange futures price was around $2,300 a ton on Friday. That means curtailments look set to accelerate over the winter.
“Whenever we get downturns in economic growth and smelter margins come under pressure, we see European smelters shutting a decent portion of capacity,” said Uday Patel, senior research manager at Wood Mackenzie. “When things improve, there are some smelters that never come back online.”
Wood Mackenzie estimates that Europe has already lost about 1 million tons of its annual aluminum production capacity, and Patel said he expects that about 25% of that may be curtailed permanently. Another 500,000 tons is “highly vulnerable” to closure, Wood Mackenzie estimates.
The curtailments have had little impact on aluminum prices, which have fallen by more than 40% since a peak in March as traders brace for a global slump in demand that could be even more severe.
But while Europe’s production losses account for about 1.5% of global supply, they will leave consumers in Europe increasingly reliant on imports that will be costlier and carry a heavier carbon footprint.
Already, European manufacturers are paying hefty delivery fees to get aluminum shipped to local ports, and further increases could leave them in an increasingly uncompetitive position relative to peers across Asia and the US.
The energy crisis is also rippling quickly down the supply chain to companies that buy aluminum from smelters and transform it into specialist products used in everything from cars to food packaging.
They use significant amounts of gas in the process, and many are looking to pass on their surging energy costs via contractual surcharges that could bake in additional costs for manufacturers for years to come.
“The smelter curtailments are only the tip of the iceberg, because you also have downstream players who are buying prime metal and transforming it into products for use in sectors like beverage cans and automotives,” said Michel Van Hoey, a senior partner at McKinsey & Co. These companies have typically seen a ten-fold increase in their energy bills and “will not be able to fully pass on those costs without some degree of demand destruction or import substitution.”
At Slovalco, Vesely — who has worked at the company since 1989 — is hopeful it will be able to reopen the plant once energy prices fall, but acknowledges the risk that it could remain offline for years.
“Something must be done if we don’t want to destroy European aluminum production,” he said. “If Europe considers aluminum as a strategic metal, then aluminum plants should have guaranteed prices of electricity.”
Bloomberg - Are you a robot?
www.bloomberg.com
Russia switches off Europe’s main gas line until sanctions are lifted
Russia’s gas supplies to Europe via the Nord Stream 1 pipeline will not resume in full until the “collective west” lifts sanctions against Moscow over its invasion of Ukraine, the Kremlin has said. Dmitry Peskov, President Vladimir Putin’s spokesman, blamed EU, UK, and Canadian sanctions for Russia’s failure to deliver gas through the key pipeline, which delivers gas to Germany from St Petersburg via the Baltic sea. “The problems pumping gas came about because of the sanctions western countries introduced against our country and several companies,” Peskov said, according to the Interfax news agency.
“There are no other reasons that could have caused this pumping problem.” Peskov’s comments were the most stark demand yet by the Kremlin that the EU roll back its sanctions in exchange for Russia resuming gas deliveries to the continent. Gazprom, Russia’s state-run gas monopoly, said on Friday it would halt gas supplies through Nord Stream 1 because of a technical fault, which it blamed on difficulties repairing German-made turbines in Canada.
The EU has already rolled back some sanctions against Russia explicitly to allow the turbines to be repaired. European leaders have said there is nothing to prevent Gazprom from supplying the continent with gas and has accused Russia of “weaponising” its energy exports.
Russia is still supplying gas to Europe via Soviet-era pipelines through Ukraine that have remained open despite the invasion, as well as the South Stream pipeline via Turkey.
But Peskov said Russia could not resume supplies in full via Nord Stream 1 until the west lifted the sanctions. He accused western countries of causing “turmoil” by denying Gazprom legal guarantees that the turbines sent for repair would be returned.
But Russian officials have made little secret in recent weeks of their hope that the growing energy crisis in Europe will sap the bloc’s support for Ukraine. “Obviously life is getting worse for people, businessmen, and companies in Europe,” Peskov said. “Of course, ordinary people in these countries will have more and more questions for their leaders.”
Former Russian president Dmitry Medvedev was even more explicit on Sunday after German chancellor Olaf Scholz announced a €65bn aid package to soften the blow of soaring energy bills.
Medvedev, now deputy chair of Russia’s security council, said Germany was “acting as an enemy of Russia” by supporting sanctions against Moscow and supplying Ukraine with weapons. “They have declared hybrid war against Russia,” Medvedev wrote on Telegram. “And this old man acts surprised that the Germans have some little problems with gas.”
Russia switches off Europe’s main gas pipeline until sanctions are lifted
Gazprom had previously said it was halting flows through Nord Stream 1 because of a technical fault
Sami1234
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Today Macron completely destroyed the MidCat pipeline project that was supposed to connect Spain and Germany.
after a meeting with his German counterpart, Olaf Scholz, Macron said "there is no need for Spain to export its gas capacities to France, since it is importing it at the moment (from the US and Russia) I am speaking to you. I do not understand why jumping like Pyrenean goats [French expression meaning rush] over this gas pipeline to solve the gas problem.
theobjective.com
after a meeting with his German counterpart, Olaf Scholz, Macron said "there is no need for Spain to export its gas capacities to France, since it is importing it at the moment (from the US and Russia) I am speaking to you. I do not understand why jumping like Pyrenean goats [French expression meaning rush] over this gas pipeline to solve the gas problem.
Macron descarta el gasoducto entre Francia y España: «No responde a nuestros problemas»
Francia da carpetazo a una posible nueva conexión de gas con España a través de los Pirineos. Aunque las autoridades del país vecino llevaban tiempo dando
theobjective.com
Sami1234
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Spain was the world's largest importer of Russian gas by ship in July and August data showsToday Macron completely destroyed the MidCat pipeline project that was supposed to connect Spain and Germany.
after a meeting with his German counterpart, Olaf Scholz, Macron said "there is no need for Spain to export its gas capacities to France, since it is importing it at the moment (from the US and Russia) I am speaking to you. I do not understand why jumping like Pyrenean goats [French expression meaning rush] over this gas pipeline to solve the gas problem.
Macron descarta el gasoducto entre Francia y España: «No responde a nuestros problemas»
Francia da carpetazo a una posible nueva conexión de gas con España a través de los Pirineos. Aunque las autoridades del país vecino llevaban tiempo dando
Second-largest steelmaker in the world, ArcelorMittal shuts plant in Europe, Here’s why
The second-largest steel producer in the world, ArcelorMittal, is the most recent business name to announce the closure of a factory in Europe as a result of rising gas and energy costs.Due to the outrageously high surge in energy prices, ArcelorMittal is shutting down one of the two existing blast furnaces at its steelworks plant in Bremen of Germany, starting by the end of September until any further updates.
According to ArcelorMittal, they are taking this action in Europe because it is unable to operate all of its factories profitably due to the high cost of energy.
The decision was made by the steel giant in parts due to weak market demand, a bleak economic outlook, and consistently high CO2 expenses in steel manufacturing.
According to the CEO of ArcelorMittal Germany, Reiner Blaschek, the high cost of gas and electricity is severely hampering competitiveness.
Additionally, starting in October, we will be further burdened by the German government's proposed gas levy.
Blaschek urged elected officials to act quickly to bring energy prices under control right away.
Due to exorbitant energy costs, aluminum smelters in Europe have also started closing recently.
According to a poll conducted by the Association of German Chambers of Industry and Commerce, DIHK, at the end of July, one out of every six industrial enterprises in Germany feels compelled to cut production as a result of high energy prices.
According to a poll of 3,500 enterprises from all industries and areas in Germany, about a quarter of those compelled to scale back output had already done so by the end of July, and then another one-quarter are in the process of doing so.
According to the DIHK poll, 32% of businesses expect to restrict production or have already begun doing so, including stopping entire production lines. This has an especially negative impact on energy-intensive businesses and industries.
Second-largest steelmaker in the world, ArcelorMittal shuts plant in Europe, Here’s why
Following the Russian invasion of Ukraine in February this year, Moscow shut off gas shipments to Europe, raised prices, and posed a risk of recession and energy shortages as winter is approaching.
Germany continues to be hit by the economic crisis
@Cabatli_TR @Test7 @Zafer @Ryder @T-123456 @MisterLike @Yasar @Nilgiri
Zafer
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Second-largest steelmaker in the world, ArcelorMittal shuts plant in Europe, Here’s why
The second-largest steel producer in the world, ArcelorMittal, is the most recent business name to announce the closure of a factory in Europe as a result of rising gas and energy costs.
Due to the outrageously high surge in energy prices, ArcelorMittal is shutting down one of the two existing blast furnaces at its steelworks plant in Bremen of Germany, starting by the end of September until any further updates.
According to ArcelorMittal, they are taking this action in Europe because it is unable to operate all of its factories profitably due to the high cost of energy.
The decision was made by the steel giant in parts due to weak market demand, a bleak economic outlook, and consistently high CO2 expenses in steel manufacturing.
According to the CEO of ArcelorMittal Germany, Reiner Blaschek, the high cost of gas and electricity is severely hampering competitiveness.
Additionally, starting in October, we will be further burdened by the German government's proposed gas levy.
Blaschek urged elected officials to act quickly to bring energy prices under control right away.
Due to exorbitant energy costs, aluminum smelters in Europe have also started closing recently.
According to a poll conducted by the Association of German Chambers of Industry and Commerce, DIHK, at the end of July, one out of every six industrial enterprises in Germany feels compelled to cut production as a result of high energy prices.
According to a poll of 3,500 enterprises from all industries and areas in Germany, about a quarter of those compelled to scale back output had already done so by the end of July, and then another one-quarter are in the process of doing so.
According to the DIHK poll, 32% of businesses expect to restrict production or have already begun doing so, including stopping entire production lines. This has an especially negative impact on energy-intensive businesses and industries.
Second-largest steelmaker in the world, ArcelorMittal shuts plant in Europe, Here’s why
Following the Russian invasion of Ukraine in February this year, Moscow shut off gas shipments to Europe, raised prices, and posed a risk of recession and energy shortages as winter is approaching.economictimes.indiatimes.com
Germany continues to be hit by the economic crisis
@Cabatli_TR @Test7 @Zafer @Ryder @T-123456 @MisterLike @Yasar @Nilgiri
If we can reduce our energy bill we will have a huge industrial advantage.
Sami1234
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Tosyali Algerie | Page D'accueil
Tosyalı Iron Steel Industry Algerie est une filiale de Tosyalı Holding.
www.tosyali-algerie.com
