British Steel Raises Prices Again 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 on Tuesday. The company earlier increased prices on the same products by £250 a ton, The Times reported in March. 

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 manufacturers have responded by reducing supply -- zinc producer Nyrstar announced Tuesday it will stop production at a large smelter in the Netherlands -- while others, like British Steel, are seeking to pass surging power costs on to customers.

That may become more difficult, however, as European steel prices slide in expectation that weakening economic activity in the region will hurt demand.