The Spanish industry begins to stop its activity due to the rise in energy

The rebound in the price of electricity and fuel due to Russia’s invasion of Ukraine has caused the Spanish industrial sector to begin resorting to production shutdowns.

When two weeks have passed since the beginning of the Russian invasion, the price of electricity reaches almost 473 euros (about US$524) per megawatt hour (MWh), the second highest in history in Spain.

In fact, the price of electricity multiplies by more than eight what it was just a year ago (56.88 euros), and has more than doubled (131% more) since the Russian invasion of Ukraine began on February 24.

Companies such as the multinational Acerinox, one of the largest steel producers in the world, have begun to cease activity, in their case at the Los Barrios factory (south), with some 1,800 employees, due to the cost of energy and the increase of the price of nickel also because of the war in Ukraine.

Nickel, which is essential for its production and its main exporter is Russian, reached US$ 100,000 per ton on the London Metal Exchange this past Tuesday, more than double its price in a single day.

ArcelorMittal, one of the largest steel companies in the world, announced the stoppage of its production in Sestao, where it has about 220 workers, after another of its factories in northern Spain, that of Olaberria, also had to stop this Tuesday during 17 hours to avoid “producing at a loss” due to an “unsustainable” electricity price.

The chemical company Ercros also makes “temporary production adjustments” to be able to adapt the activity to energy prices, confirmed company sources, who assure that it is a measure that the entire Spanish chemical sector is taking these days.