Posted on 08/23/2022 8:07:12 AM PDT by bitt
As the global economy labors under sky-high energy costs, those costs are bleeding through the entire economy triggering record-setting inflation. One sector being increasingly battered by the high energy prices is the commodities sector, and that is raising prices which will be passed on to consumers through every producer and manufacturer dependent on those commodities to produce their products.
The storm hitting commodities will eventually add to the pressures on consumers, and affect investors, as it affects the profitability of the companies who supply products. And things are set to get even worse as winter approaches, and supplies of natural gas and other energy products are diverted to the heating market, raising prices even higher on the manufacturers who need them in order to operate.
Industrial metals are particularly hard hit already. Europe’s zinc and aluminum smelting capacity is already down about 50% from a year ago, and more is going offline as winter approaches, the energy market tightens, and nations begin rationing use now to try and avert being unable to heat homes in winter.
Norsk Hydro ASA said this week its aluminum smelter on Slovakia will be shuttered at the end of September as power prices make continued operation untenable. Meanwhile Nystar has announced its Budel zinc facility in the Netherlands will be shut down as well. Local exchange piles were already incredibly low, which means now imports will become vitally important. However the overseas picture for metals is not necessarily any better.
(Excerpt) Read more at thefinancialtrends.com ...
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That sentence makes it sound like something unexpected has happened.
By design
How could they not? Being used both for energy and feed stocks the higher cost of oil, coal, and natural gas bleed into everything. It’s like being surprised at getting choked of oxygen makes you unconscious. Stupid.
Now it's time for my cold shower washcloth bath.
As reported by War in Ukraine today - also the German fertilizer company KSW is shutting.
https://www.youtube.com/channel/UCP2QApi8G2TKc8NZmeDWSUg/videos
Wow I am shocked Biden says the economy is great.
One thing the story missed. Plastic come from petroleum.
Itr takes energy to produce commodities and at wsome point as we are seeing begin - it becomes too expensive to produce necessary commodities, and at that point, the West begins to collapse and de-industrialization follows. Then we return to governance and energy usage we had before which is feudalism, slavery and brute force governance.
A green paradise ...
I wonder how “green” he will feel when he starts chopping down trees on the Streets of Berlin?
Aluminum foil has doubled already.
2022-2023 The Winter of discontent
Alas - we have senile children who cheated their way into power...
They are radicals, reality doesn't get in the way of their cause.
Please folks, don't send your children to these Brainiac Universities! When they get out they can't think their way out of a paper bag.
https://nypost.com/2022/05/10/heres-how-team-biden-is-fueling-food-inflation/
Notice how our Dear Elite Brainiacs blame the Ukraine War? That Ukraine War is being financed through Biden's/Democrats’ War on Energy.
Blithely motoring onward - until they realize that they're standing in front of Ceaușescu's wall...
Henry Hub Natural Gas Spot Price is at a current level of 9.28, up from 8.62 the previous market day and up from 3.93 one year ago. This is a change of 7.66% from the previous market day and 136.1% from one year ago.
Haven’t used that in almost a decade. That press and seal is amazing. I bought 15 rolls year’s ago and still have some. Aluminum foil is pretty much 70’s type junk.
Well, yeah. Thanks to the energy component in everything produced and/or sold, this is always the case. It even works for ethanol fuel, because the overwhelming majority of farm tractors are gasoline or diesel powered. Same goes for trucking, which gets every product where it's going, and diesel is used for locomotives in the prior transportation step. Same goes for the cranes that unload the freighters. And consumer travel to and from the store is mostly gasoline, with some diesel and a little bit of electric (which is mostly from coal).
WIKI-——Oil refineries will blend various feedstocks, mix appropriate additives, provide short-term storage, and prepare for bulk loading to trucks, barges, product ships, and railcars.[4]
Gasses like propane and methane are stored within petroleum.
Liquid fuels blending (producing automotive and aviation grades of gasoline, kerosene, various aviation turbine fuels, and diesel fuels, adding dyes, detergents, antiknock additives, oxygenates, and anti-fungal compounds as required). Shipped by barge, rail, and tanker ship. May be shipped regionally in dedicated pipelines to point consumers, particularly aviation jet fuel to major airports, or piped to distributors in multi-product pipelines using product separators called pipeline inspection gauges (”pigs”).
Lubricants (produces light machine oils, motor oils, and greases, adding viscosity stabilizers as required), usually shipped in bulk to an offsite packaging plant.
Paraffin wax, used in illumination (candle wax) and other uses. May be shipped in bulk to a site to prepare as packaged blocks.
Slack wax, a raw refinery output comprising a mixture of oil and wax used as a precursor for scale wax and paraffin wax and as-is in non-food products such as wax emulsions, construction board, matches, candles, rust protection, and vapour barriers.
Sulfur, by-product of sulfur removal[5][6][7] from petroleum, which contain percent of organosulfur compounds.
Bulk tar shipping for offsite unit packaging for use in tar-and-gravel roofing or similar uses.
Asphalt, used as a binder for gravel to form asphalt concrete, which is used for paving roads, lots, etc. An asphalt unit prepares bulk asphalt for shipment.
Petroleum coke, used in specialty carbon products such as certain types of electrodes, or as solid fuel.
Petrochemicals or petrochemical feedstocks such as ethylene,[8] propylene, acrylic acid,[9][10][11] and benzene-toluene-xylenes[8][12][13] (”BTX”) and others. These organic compounds are turned into polymers, plastics, and pharmaceuticals, among others.
Oil can be used to make many products in a way that is more sustainable than use as a fuel, which creates pollution.
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