Posted on 08/18/2022 1:01:07 PM PDT by EBH
The energy crisis is getting worse, piling pressure on commodities industries that provide the building blocks of the global economy.
Energy-intensive sectors such as steel, fertilizers and aluminum — the most widely used base metal — are being forced to close factories or pass on soaring costs. Materials crucial for electric-car batteries and generating solar power are feeling the pinch, too.
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The tumult risks further squeezing households struggling with the worst cost-of-living crisis in decades and pushing economies into recession. If things aren’t bad enough now, they could get much worse this winter, when gas supplies are set to become even tighter.
Here’s how different raw-material sectors are faring so far:
Industrial metals Europe has already lost about half of its zinc and aluminum smelting capacity over the past year, and more is set to go offline.
This week, Norsk Hydro ASA said it plans to shutter an aluminum smelter in Slovakia at the end of September due to soaring power prices, and Nyrstar announced it will halt the giant Budel zinc facility in the Netherlands. With local exchange stockpiles incredibly low, that may put more dependence on imports to meet demand.
The aluminum sector is also being affected in Sichuan, one of China’s most populous provinces and where drought is curbing crucial hydropower output. That has forced smelter Henan Zhongfu Industry Co. to stop production for a week for some units there.
US suppliers are also suffering. Major aluminum producer Century Aluminum Co. earlier this year said it was idling its massive Kentucky plant after energy costs reached the point where it was unprofitable to run it.
While copper producers have been less exposed to the energy crisis due to lower consumption, they’re still being squeezed.
(Excerpt) Read more at mining.com ...
Because of democrat stupidity the world is getting poorer. John Kerry and other ‘greenie elites’ have this misery on their hands.
Agree.
China is shutting down manufacturing in two provinces due to drought. You’ll have to go look for it, because every source available is not allowed on FR.
post it anyway.
Well, the Inflation Reduction Act has loads of tax credits and rebates for homeowners for heat pumps, solar energy panels and other “worthy” appliances.
Have fun helping your neighbors buy these things via your income taxes.
Anyway, demand for these commodities could rise.
Just like electric vehicles, the price of those will likely increase to absorb the govt gravy.
All they see are these dopey little Priuses puttering around and have no clue as to the earth moving monstrosities used in mining. The list is endless.
No one thinks. No common sense.
Time to build the Inga Falls Hydro Power plants.
Of course there is always solar. How about a giant magnifying glass?
This is stupid. All stupid and created. It should end just as fast as it began and could if someone wanted it to.
The beginning of the end? Just wait til ag prices show up late this year!
Save those empty beer cans. Their value to the recycling industry is going up!
I expect a renaissance in aluminum recycling due to the energy costs making the processing of aluminum ore too expensive.
They don’t care.
You’re right. Dead souls...
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