European steel industry faces production shutdown due to rising energy prices

Europe's steel industry is being forced to cut production or even shut down due to soaring energy prices, with some operators warning of permanent shutdowns. Germany, which depends to some extent on Russian natural gas, will face additional energy costs of 10 billion euros, equivalent to a quarter of the industry's average annual income.

German Steel Association (WV Stahl) chairman Hans Jurgen Kerckhoff said the winter closure and the industrial downturn will threaten the German economy unless immediate action is taken.

ThyssenKrupp Steel Europe's production has been cut as a possible recession hurt demand and rising energy prices hurt its international competitiveness.

ArcelorMittal, the world's second-largest steelmaker, has shut down several steel mills, including in Germany, forecasting a 17% annual fall in European production in the fourth quarter.

Belgian stainless steel maker Aperam's current monthly electricity bill was the equivalent of a year's worth of the past and it was forced to stop production.