UK-based steelmaker British Steel has raised its prices for structural sections by GBP100/mt ($120.35/mt) for all new orders with immediate effect, it said in an Aug. 15 letter to customers seen by S&P Global Commodity Insights.
The company attributed the increase to a surge in energy prices and the significant impact on steelmaking costs.
Electricity costs make up a large portion of steelmaking costs, accounting for up to 20% of the costs of converting basic raw materials into steel.
UK day-ahead baseload electricity was assessed by Platts at GBP381.85/MWh Aug. 15, up 260% year on year. The baseload Calendar 2023 contract was assessed at GBP449.65/MWh, a new record and up 350% year on year.
The UK usually produces around 7 million mt/year of crude steel, about 70% of the country’s annual requirement, although this dropped to 6.05 million mt in 2021.
The UK government said Aug. 12 that it was consulting on the option to increase support for high electricity-using businesses like the steel industry. It is aiming to boost the level of exemption for certain environmental and policy costs from 85% to up to 100%.
— Jacqueline Holman, Benjamin Steven