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Industrial|Steel
Industrial|Steel
industrial|steel

BURNING ISSUE

BURNING ISSUE: As with efforts to salvage the integrated Newcastle steel mill, policy and electricity-tariff interventions aimed at sustaining and reviving the country’s ferrochrome smelters are also facing headwinds. It is widely accepted that the 900%-plus increase in electricity tariffs since 2008 is the reason why many smelters are uncompetitive and unprofitable. However, a subsidy in this area will have serious price consequences for other electricity users, including industrial firms facing similar competitiveness pressures.

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12th December 2025

     

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As with efforts to salvage the integrated Newcastle steel mill, policy and electricity-tariff interventions aimed at sustaining and reviving the country’s ferrochrome smelters are also facing headwinds. It is widely accepted that the 900%-plus increase in electricity tariffs since 2008 is the reason why many smelters are uncompetitive and unprofitable. However, a subsidy in this area will have serious price consequences for other electricity users, including industrial firms facing similar competitiveness pressures.

Edited by Creamer Media Reporter

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