Energy crisis hit raw materials industries

Key raw material industries suffer due to the energy crisis. Problems affected manufacturers of industrial and green metals, steel. Fertilizer and sugar companies also reduce production costs, writes Bloomberg.

Experts of the publication notes that Europe has already lost about half of its capacities to smear zinc and aluminum over the past year. Steel plants in China suffered due to drought and power outages.

In the United States, steel factories to suspend some operations to reduce electricity costs. Material companies have encountered difficulties for batteries of electric vehicles and solar panels.

World fertilizers reduce supplies to other countries, because they fear the onset of the food crisis. According to Bloomberg, at least a quarter of European capacities for the production of nitrogen fertilizers is already lost. The International Association of Fertilizer Manufacturers predicts that in the next season, world fertilizer consumption will reach a record fall from the 2008 crisis.

Analysts believe that world food prices will increase after increasing sugar prices. SueDzucker AG in Germany said that sugar prices will increase due to the redistribution of expenses in case of emergency, which may arise after the termination of Russian gas supply.