Europe’s steel mills, the largest steel company in the world ArcelorMittal for electricity pay two to three times less than a subsidiary of steelmaker ArcelorMittal Kryvyi Rih.
As reported Hvilya, NV writes about this, referring to ArcelorMittal.
Head of procurement of raw materials and energy administration to supply AMKR Oleg Aiko said that the Ukrainian electricity market is out of the world trend, “and from the end of April we are even seeing the growth of RSV (the day-ahead market). This situation puts the domestic metallurgy in a non-competitive position on the world market compared to other producers”, – he stressed.
While AMKR believe that in Ukraine the price of electricity is inflated and does not reflect the global trend of lower prices for raw materials and energy.
Also, according to the company, the significant costs of electricity impact negatively on the cost of production, which becomes a critical factor for the Ukrainian steel industry, which is currently significantly complicated. This is due to falling prices for metal, as well as a decrease in the number of sales in a pandemic.
The company emphasizes that the market is now global steel industry is going through an extremely difficult period, which is due to both a significant drop in steel prices and the limitations that had to stolknutsya business in connection with the spread of coronavirus infection COVID-19.
Aiko also said that ArcelorMittal international corporations there is the possibility to analyze the prices for raw materials and energy in different countries of the world. He stressed that monthly AMKR consumes from 300 to 340 million kWh, depending on production volumes and schedules of the main aggregates.
Thus, ArcelorMittal encourages the government of Ukraine to resolve the situation, which he considers associated with non-market approaches to pricing electricity.
“It has caused damage to the industry and jeopardizes the plans for overcoming the crisis and could trigger further decline in industrial production at ArcelorMittal Kryvyi Rih”, – said a top Manager.
Leaving data of the market Operator, the average price on day-ahead market in Ukraine in April amounted to 1265,04 UAH/MW*h, which is 9.1% lower than in March. In turn, vnutricletocnam market (HRV) the weighted average price of electricity in April decreased by 9.7% up to 1228,62 UAH/MW*h. But, for the first five days of may, the average prices for RSV and HRV were respectively 1283,99 UAH/MW*h and 1165,13 UAH/MW*h.
In Ukraine, the largest private producer of electricity is the holding DTEK businessman Rinat Akhmetov. Thus, he controls 75% of thermal generation in Ukraine. Moreover, DTEK owns and much of the “green generation” electricity.