LONDON, Sept 24 (Reuters) – Belgium-based Nyrstar NYR.BR has cut zinc production at its smelter in the Netherlands because of the rise in electricity prices in Europe, the company said in a statement.
“Nyrstar’s fully electrified zinc smelter in Budel-Dorplein, the Netherlands, is curtailing production during peak times of day when power prices exceed the break-even cost of production,” a spokesman said in a emailed statement.
“This is in response to the surge in regional power prices over the past year.”
The spokesman would not say what Budel-Dorplein’s zinc production capacity was or how much production had been lost.
Market sources say Budel has capacity to produce around 300,000 tonne of zinc a year. Zinc is used to galvanise steel.
Record high natural gas prices are pushing some energy-intensive companies to curtail production in a trend that is adding to disruptions to global supply chains.
(Reporting by Pratima Desai; editing by xxxx)
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