Power and Chips Darken the Outlook for Europe’s Steelmakers
- Mills have curtailed production as energy costs surge
- Chip shortage could accelerate already declining prices
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European steelmakers are starting to see some dark clouds on the horizon after their best first half in a decade.
A combination of surging power prices and snarled supply chains is conspiring to clip the industry’s wings just after it enjoyed some of its highest quarterly profits in years. The rally in steel stocks that has endured since March 2020 already looks to be faltering.