Some factories in the United Kingdom are forced to shut down in a sign that skyrocketing gas and power prices are threatening to slow Europe’s economic recovery. CF Industries Holdings Inc. on Wednesday said it is suspending production at its Billingham and Ince production facilities in the UK due to high natural gas prices. The fertiliser maker said it could not predict when it would resume operations.
The move came as natural gas and electricity prices broke records day after day. Natural gas supply from Russia and Norway remain limited, while European LNG buyers cannot outcompete Asian rivals in securing more cargoes. As a result, Europe is now running out of time to refill storage tanks ahead of the start of the peak winter heating demand. Analysts warned that the gas shortage could result in power outages this winter.
At the same time, high energy prices are compounding concerns about inflation at the time when businesses are already grappling with soaring raw material costs. Producers will eventually pass on the additional costs to customers, which could hurt their spending and the entire economy.
