In October, prices for gas increased three-fold and electricity costs increased nearly four-fold, a mill source estimated.
“The cost of the recent gas and electricity price rise will be about €100 per tonne of steel,” a mill source in Southern Europe told Fastmarkets.
Possible support from regional governments
Italian authorities have discussed the possibility of supporting energy-intensive industries, market participants said. Some sources also claimed that other member states of the European Union are likely to consider similar steps.
The Italian government might reduce energy tax rates for all businesses in the country, a distributor source said.
Some market participants, however, believe that such policy might be seen as subsidizing. This might also harm already tense negotiations between the EU and US authorities regarding Section 232 review.
Earlier this month, United States mills stressed the need to maintain Section 232 against the EU because steel producers in Canada and the...