UK STEEL, lobbying the interests of the British steel industry, warned that the country was on the verge of a crisis due to a sharp increase in gas wholesale prices. The high cost of the energy carrier can lead to stops of factories, a decrease in production profitability, an increase in greenhouse gas emissions and failures in supply chains, transfers Reuters.
In the UK Steel added that in the winter there may be another increase in the price of fuel, which will make it impossible to make profitable steel production. In addition, some plants will be forced to stop production for a longer time, which violates the supply of steel and reduce jobs in the UK. And sudden stops can damage the equipment, increase the costs and end up jeopardized the environmental situation in the country due to the increase in greenhouse gas emissions, the sectoral group warns.
She called on the government to help, otherwise, “the consequences will be terrible.” The Minister of Entrepreneurship, Energy and Industrial Strategy of Great Britain Quasi Kuparth declared on October 10 that the authorities work on the support of energy-intensive industries affected by gas prices. The official called the situation critical.
Since the beginning of the year, gas in Europe has risen in price more than four times. On October 6, the cost of fuel exceeded $ 1900 per thousand cubic meters, but on October 7, gas prices fell below $ 1,000 per thousand cubic meters. The Financial Times newspaper tied price adjustments to the statements of the President of the Russian Federation Vladimir Putin on the readiness of the country to stabilize the cost of fuel in Europe. As of 15:21 Moscow time on October 12, the November futures traded on the ICE exchange for 86.85 euros per megawatt-hour (which is equivalent to 1030 dollars per thousand cubic meters).