Gas price alarm: markets reel as costs surge

Escalating energy costs fueled by the Iranian war are strangling German heavy industry, making the production of essential commodities increasingly unsustainable

Europe’s aluminium and fertilizer industries are under severe pressure as soaring natural gas prices and rising CO2 levies erode competitiveness against global producers. News.az reports, citing dw.com.

Aluminium recyclers like Germany's Novelis rely on melting scrap at high temperatures, but despite using 95% less energy than primary production, they still face energy costs twice as high as those in other world regions. 

Fertilizer producers such as Germany’s Piesteritz plant also struggle, as natural gas is a key feedstock for ammonia and nitrogen fertilizer, prompting temporary shutdowns and concerns about Europe’s food security. Industry leaders warn that without political action to secure local raw materials and reduce energy burdens, Europe’s resilience and ability to maintain essential industrial production will be at risk.

News.Az