Spain: energy costs, steel giant cuts production – economy

MADRID – A large Spanish steel company based in the Basque Country, Sidenor, will partially halt production due to electricity costs considered unsustainable, according to a press release from the company.

Sidenor has decided to cut 20 days of production planned by the end of the year, a reduction of 30%. “Sidenor pays 227 euros per megawatt hour in October and forecasts for November and December reach 284 euros, while last year he paid just over 60,” the statement said.

The partial shutdown of production will take place initially in the central plant of Sidenor in Basauri (Basque Country).

The measure, however, could involve other factories in the future, the company said.

Electricity prices in the Iberian market have skyrocketed in recent months, raising alarms for both households and strategic production sectors.

The Spanish government has put in place several measures to try to contain the impact of this surge in prices and has requested the intervention of the European Union, arguing that it does not have sufficient tools to control the urgency of autonomous way.

One of Spain’s proposals is to encourage the collective purchase of natural gas, the costs of which also affect electricity prices.