Germany’s “Tenfold Enhance in Gasoline and Electrical energy Costs” Is Driving Out Trade – Watts Up With That?

From the NoTricksZone

By P Gosselin 

What leaves as soon as, is not going to come once more. Whereas power costs in Europe are going by way of the roof, they continue to be average within the USA. It will have critical penalties for energy-intensive industries.

The Wall Road Journal (paid article) is already rubbing its arms collectively for the US economic system. It’s twice helpful: excessive costs for LNG exports and new jobs sooner or later. It’s Win/Win – Lose. One of many losers for Germany is Areclor-Mittal. Now they’re turning down the primary blast furnace. Right here, too, the USA is profiting. The FAZ experiences:

Arcelor-Mittal, the world’s largest metal producer, is shutting down two manufacturing amenities on the finish of September resulting from excessive power costs in Germany. “Till additional discover,” one of many two blast furnaces on the plate metal website in Bremen will probably be shut down. And the direct discount plant on the Hamburg lengthy metal mill can be to be shut down. Along with the already excessive prices for fuel and electrical energy, the fuel surcharge deliberate from October will place an additional burden on the competitiveness of energy-intensive crops, it says in justification. ‘With a tenfold enhance in fuel and electrical energy costs, which we needed to settle for inside a number of months, we’re now not aggressive in a market that’s 25 p.c equipped by imports,’ Germany CEO Reiner Blaschek is quoted as saying in a press release from Arcelor-Mittal.

So as to keep away from fuel consumption in Hamburg, the precursor iron is now being bought from America so as to have the ability to proceed manufacturing – extra cheaply, however with a better CO2 footprint. Decreased work hours can be being launched on the manufacturing websites in Duisburg and Eisenhüttenstadt as a result of troublesome scenario.”

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