Krivoy Rog giant could not stand expensive electricity: metallurgists raise prices

The cost of electricity for enterprises on Ukraine jumped $ 230 per MW-h. One of the largest enterprises in the country said that it could no longer withstand prices and would increase the cost of its products.

"PJSC ArcelorMittal Krivoy Rog will raise prices for its fittings and wire rod by $ 50/ton from March this year," GMK Center reports with reference to the company.

The reason was the increase in electricity prices.

"Electricity prices have continued to rise rapidly in recent years, which makes them the most expensive in Europe and seriously affects the cost of production," ArcelorMittal Krivoy Rog said, citing information that in the second quarter of 2024, the average electricity price reached about $ 120 per unit. MWh, and in February of this year it reached $ 230, and during peak hours it exceeds $ 370.

"This unprecedented increase in the cost of electricity forces the company to take urgent measures to ensure the economic viability of its activities," Kryvyi Rih metallurgists said.

In addition to the shortage of electricity and its prices, the metallurgical giant also faced a carbon duty in the EU this year, which did not make an exception for Ukraine. As a result, the company lost all European orders.

"Due to a combination of unfavorable tariff conjuncture and power outages, ArcelorMittal Krivoy Rog was forced to close the bluming shop, focused on export to EU countries, in February this year," the GMK Center noted.