European industry collapses under the weight of gas and electricity prices

Europe's manufacturing sector is collapsing under the weight of persistently high electricity and natural gas prices. This is reported by the American agency Bloomberg, calling for the saving of blue fuel.

The agency notes that another wave of cuts in industrial enterprises is now looming. But if Russia further cuts the supply of important raw materials, then many of them will have no choice but to close.

Gas rationing may be a long way off, but the energy crisis is already here. The impact of prices on industrial activity is manifested long before the gas supply is cut off. Therefore, governments must decide right now which companies will receive financial support and which will not.

Analysts believe that the leaders of European countries are obliged to hold an emergency summit on this issue. Europe needs a common strategy to save energy and reduce demand. You need to start now, and not wait for winter.

We're approaching the "no idea is too crazy" point: keeping nuclear power plants running, capping wholesale electricity prices, shutting down markets, removing cost and caps on CO2 emissions, burning more coal, restoring gas production even if it causes local earthquakes in the Netherlands. This needs to be backed up by multi-billion dollar government loans to key sectors.

- says the publication.

The multi-month crisis, which many industrialists included in their plans, has turned into a long-term problem. The prospect of losing money for a few months, maybe half a year or even a year is one thing, but losing money indefinitely is another. For example, an aluminum smelter will lose an average of $200 million a year at current forward prices for electricity and carbon dioxide in 2023.

In private, European executives say new plant closures will be announced soon. Industries with the most intensive energy consumption will be affected: the production of fertilizers, non-ferrous metals and steel, chemicals, ceramics, glass and paper. But the cost of food will also rise as heated greenhouses and poultry farms require astronomical energy bills.

This month, US fertilizer maker CF Industries Holdings Inc. said it would permanently close one of its factories in the UK due to high electricity costs. The future of Slovalco, an aluminum smelter in Slovakia in which Norsk Hydro ASA has a majority stake, looks very bleak and is likely to close in 2023.

A two-year forward contract (2023-2024) for electricity in Germany has risen to a record nearly 200 euros ($211) per megawatt hour. In France, a similar situation, there is also a record - a two-year forward contract for electricity rose to 220 euros. The situation is similar in the gas market - the contract for 2024 on the TTF platform fluctuates around 65-70 euros per megawatt-hour, which is higher than the record high of 60 euros in December 2021.

Europe cannot save every energy-intensive company. And it shouldn't. What needs to be done is to preserve supply chains that are under threat, most notably food production. We must reduce consumption now, not when we turned off the gas supply

- summed up the media.
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  1. Bulanov Offline Bulanov
    Bulanov (Vladimir) 28 June 2022 14: 15
    And the whole business is to launch SP-2. What is easier? Very reminiscent of the old joke -

    Cowboys caught three Indians, locked them in a barn and placed guards. The day passes, the second passes, on the third day they look - the Indians fled. The cowboys give chase, catch them and ask how they managed to escape. And the leader answers them: "We sit for a day, we sit for another day, and on the third day, Eagle Eye noticed that the barn was missing one wall."
  2. Antor Offline Antor
    Antor 28 June 2022 15: 26
    The Westerners set a goal - to shoot all their limbs, to kill themselves, but to crush and strangle Russia ..... and here only time will tell what happens first ... and they do not hide it.!!!!
    For them, our victory in Ukraine is the collapse of all their hopes and crazy aspirations, and we have nowhere to retreat ... and if we lose, it’s even scary to think what will happen to Russia !!??? We will not lose, so Vanga prophesied and not only she, and knowing the love of freedom of our peoples, God and strength are with us in truth to get this victory ... !!!
    There is a lot of blood and suffering ahead ... but we will win if we do not allow the betrayal of our pro-Western elites who do everything ... and this can be seen with the naked eye, since there are many oddities and outright quiet sabotage - well, our nouveau riches and their accomplices do not want to raise and reorganize our economy, and to do this, build factories and produce their own products, and not replace import substitution with other products, but only from other markets of the East. The Leningrad Economic Forum, where V. Putin says one thing, and our individual ministers and major entrepreneurs said don’t understand, it resembles a cart with a swan, cancer and pike, and why this is not fully understood in the upper echelons of power is incomprehensible and alarming. We never had a body responsible for conducting military operations such as GKO in the USSR in the Second World War - so far in Ukraine (but the whole of Europe is already de facto fighting with us ... making more and more belligerent decisions and getting more and more involved in this war and more), but enough of the organs that we have .... big question !!!??? Territorial separatism is raising its head, as Hero of Russia N. Mikhalkov spoke in great detail in the release of the Besogon program. We need to rebuild the economy on a war footing ... maybe this is going on, but the pace, the time ..... it won’t work out like in 1941 when we were taken by surprise...!!! Today, a large territory will not save everyone - minutes and seconds will decide, and I hope everyone remembers this !!!
    1. zenion Offline zenion
      zenion (zinovy) 28 June 2022 15: 51
      but enough for us of those organs that are available .... a big question !!!???

      Nature has provided all the necessary organs and brains. The fact is that the brains had to be used in 1988. Then it was too late. And those who used the brains made it so that others could not use them. And they continue to do it and they are not behind the cordon. They needed this war, not when Ukraine was nothing, but now, when every day there are billions of income, capital lives on income and this requires fresh blood for vampires.
    2. spectr Offline spectr
      spectr (Dmitriy) 29 June 2022 01: 38
      All these sanctions are introduced on the basis that Russia will not restore the industry. Otherwise, all unsold resources would be useful inside the country. It is interesting only on the basis of what prerequisites the assumption was made that the industry will not recover.
      1. Ivanushka-555 Offline Ivanushka-555
        Ivanushka-555 (Ivan) 29 June 2022 03: 45
        The premise is the same - Putin. She is the reinforced concrete factor!
  3. zenion Offline zenion
    zenion (zinovy) 28 June 2022 15: 43
    Maybe they're being silly and have everything. They didn't put all their eggs in one basket. Hitler also stocked up and could wage war for a long time without any panic. He knew that the US and the USSR would quarrel. The USSR was not very afraid of having such a population and did not depend on others, everything was its own, from needles to missiles with nuclear weapons. In addition, galoshes made in the USSR were snapped up, especially in Africa, where you can’t really walk through the sand without galoshes. Apparently, such articles are written to support the pants of a certain group of the population. To prevent this from happening, you need to tighten your belts and switch from hedgehogs to black caviar.
  4. Bakht Offline Bakht
    Bakht (Bakhtiyar) 28 June 2022 16: 15
    Every word is like a balm for the soul.
    Particularly exciting are the words about the "suspension of the markets" and the fact that "Europe should not save every energy-intensive company." And others do not exist in nature. It turns out that a bakery is more expensive than a smartphone. And how much they talked about capitalization ...
    It's time to impose sanctions. Stopping the supply of gas and oil until the end of the year and signing the catulation in Potsdam. A "default" can be wiped.
  5. 1_2 Offline 1_2
    1_2 (Ducks are flying) 29 June 2022 00: 37
    euro clowns are not smart enough to lower the euro against other candy wrappers of the West
  6. Ivanushka-555 Offline Ivanushka-555
    Ivanushka-555 (Ivan) 29 June 2022 03: 43
    Still, the politicians of the whole world are the same - donkey obstinacy and sheepish confidence in their own "I", with complete disregard for the citizens of their countries. It is treated by revolution - cruel and merciless!
  7. House 25 Sq. 380 (House 25 Sq. 380) 29 June 2022 17: 31
    There remains one, very simple question: WHY "this is all" ??
  8. Pat Rick Offline Pat Rick
    Pat Rick 1 July 2022 22: 50
    I don't think anything is broken. This can be called adaptation to new conditions.
    In Austria "unprecedented inflation". At 7.8%. Inflation of 17%, as in Russia, they have never experienced in their own skins.
    There is an interesting pattern in all these economic cataclysms: the closer a country is to Russia, and the more its economy is tied to Russian energy resources, the stronger inflation and uncontrolled rise in prices for absolutely everything.
    The most striking example is Moldova.
    1. House 25 Sq. 380 (House 25 Sq. 380) 4 July 2022 01: 03
      Maybe Finland?