British Steel Raises Steel Section Prices on Surging Energy Costs

British Steel has hiked prices on some products as surging energy costs squeeze profit margins for manufacturers across Europe. The increase of £100 ($121) a ton from one of the UK’s top producers will apply to structural sections, a form of steel used in construction, a spokesman said. The company earlier increased prices on the same products by £250 a ton. Bloomberg News Agency indicated that heavy industries in Europe are suffering from the repercussions of high energy prices, which mainly affected energy-intensive industries such as metallurgical industries. Europe’s heavy industry is buckling under surging power costs which are hitting energy-intensive manufacturers the hardest. Regional benchmark power prices surged to an all-time high on Tuesday, and countries across Europe are planning for possible power shortages this winter after Russia cut its exports of gas following the invasion of Ukraine. Some metal companies in Europe were forced to reduce their production, and Nirstar Zinc announced the suspension of operation of one of the largest zinc smelters in Europe due to high energy prices.