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European Industry Starts Shutting Down as Energy Prices Soar

  • Demand destruction could be on another scale: Rystad Energy
  • Fertilizer, steel and paper industries are curbing production
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European industry is showing the first signs of shutting down as Russia’s invasion of Ukraine boosts energy costs for steelworks, fertilizer plants and paper mills to unsustainable levels.

The war in Ukraine, combined with sanctions and counter-threats from Russia, have upended commodities markets, pushing European gas prices to fresh records and triggering one of the biggest oil-supply shocks since World War II. That’s starting to throttle demand from smelters and other energy-intensive plants across the region, which were already struggling before Vladimir Putin unleashed his military machine.