Spanish industry halts production over sky-high energy prices

ArcelorMittal became the latest steel manufacturer in Spain on Thursday to announce temporary production halts because of soaring commodity prices. 

After ruling out closing factories in the Asturias region Wednesday, the company quickly changed its tune and said its factory in the region will shut down from March 24 to March 28.

Acerinox announced Wednesday it will close one of its factories until the energy market “stabilizes.” 

“The cost of electricity is unstainable for energy-intensive industries. Almost all the steel manufacturers in Spain have shut down or are thinking about it,” company's representative Bernardo Velázquez said in a statement.

More of Spain’s major steel producers like Celsa have similarly announced closures.

Other industries are also feeling the pinch in Spain.

Electricity prices have fallen significantly since peaking Tuesday at €545 per megawatt-hour ($600/MWh) but are still up nearly 90% from where they were the day before Russia began its war on Ukraine.

For instance, fertilizer company Fertiberia stopped some production while Europe’s largest ceramic tile manufacturer, Pamesa, announced it will start charging an “energy tax” on its products.

This week, even the Spanish fishermen's association asked the government to take “urgent measures” to mitigate spiking fuel costs.

European Commission President Ursula von der Leyen said last weekend that energy will be a key topic Thursday at the EU leaders’ Versaille summit.