ArcelorMittal stung as electricity prices soar

ArcelorMittal, Liberty Steel and other steelmakers are cutting back operations in Europe as power prices surge to record levels in response to Russia’s invasion of Ukraine.

Producers of the metal from Spain to Germany are beginning to slow down or entirely stop their output as the higher costs make production unsustainable, even with steel trading near record levels. Russia’s invasion of Ukraine has exacerbated already eyewatering power prices, affecting companies including Acerinox SA and Salzgitter AG.

“The situation is untenable,” said Andres Barcelo, director of Spanish industry group UNESID, which is lobbying for electricity and gas prices to be decoupled. The government in Madrid may take measures to help as early as Friday, he said.