ENERGY SURCHARGE FOR DELIVERY MONTH

Energy surcharge will remain in place for the time being

Dear Loyal and Valued Customer,

In recent months, the energy price evolution has been presenting both operational and profitability challenges, continuously affecting the supply chain, from the melting on our supplier’s production lines to the rolling mill at Böllinghaus Steel. This cost trend has further deteriorated as a result of geopolitics in 2022 and expectations for this last quarter are, to say the least, very reserved.

Böllinghaus Steel management is thus forced to maintain the Energy Surcharge adjusted to energy market developments, as usual posted monthly on our website in the month previous to delivery, at www.boellinghaus-steel.com. As it turns out, the European market is affected differently, basically by fundamentals in the supply of core energetic factors like fossil fuels, especially due to the part played by natural gas in the imports mix of each country.

In this regard, Böllinghaus states that despite rocketing energy costs in its production, the supply chain is not at comparably higher risk, because of its Portuguese rolling mill location and its sourcing of energetic and raw material mix from different places than those supplying other industries in Central Europe. We can say our production will be better safeguarded for supply, apart from pricewise.

The steel industry changes and increased difficulties in the last months drive uncertain perspectives, but Böllinghaus Steel reaffirms its commitment to the continued provision of stable supply to our valued customers.