What's Behind the Global Soaring Energy Prices?

In recent weeks, gas, coal and electricity prices have risen to their highest levels in decades. The soaring energy prices have been caused by a combination of factors, but it is inaccurate and misleading to lay the responsibility at the door of the clean energy transition.

Why are energy prices so high?

Since the start of the year wholesale gas prices have risen by 135% - and are 38.5% higher in the past month alone. Everywhere from Europe to the US to Asia is dealing with soaring energy prices.

Europe's increasingly expensive gas and electricity prices are sending a strong signal to manufacturers of various industries, to consider temporary plant closures and to home and office owners to turn down thermostats to conserve fuel this winter.

When the price of natural gas increases, utilities normally turn to coal, but the price of coal has also increased because of record-high demand from Asia and an increase in the cost of carbon permits under the EU’s Emissions Trading Scheme. Unusually low wind volumes in recent months have also curtailed the supply of renewables.

How are energy prices affecting business?

Many companies face a considerable rise in their bills due to the soaring energy prices. That could mean they have to:

• reduce or pause production - or even cease trading - which could cause job losses
• pass their increased costs on to customers as higher prices
• Energy-intensive industries are particularly exposed, but every company that has to pay energy bills - even if it's just to heat an office or shop - will be affected.

China power curbs are challenge for steel mills. Production costs at Chinese steel mill have increased, because of the power rationing and government demands for energy consumption cuts since September.

How Can Electro-permanent Magnets Help Manufacturers?

Due to the property of electro permanent magnets, they consume no power when working, except for the magnetization and demagnetization phase. This also means, that their magnetic force can remain undiminished in a sudden power outage.

For steel mills, structures, shipyards and other factories that have to deal with steel material every day, replace your current steel lifting equipment with our EPM lifting magnets, to save up to 95% of energy consumption when compared with lifting electromagnets. And most importantly, to reduce accidents of dropping load due to sudden power failure in this electricity shortage time.

Likewise, for machining centers and metal cutting workshops, upgrade your workholding devices with our EPM magnetic chucks. This also goes to magnetic grippers in robotics.

Browse our website to learn how we can help your business to cope with the soaring energy prices.