Ferroalloy maker OFZ cuts production over high power prices
Ferroalloy maker OFZ (Vladimír Klocok) has shut down four of its seven electric furnaces in response to surging power prices, which rose to €300 per MWh on the Prague commodity exchange this week, while previously peaking in 2008 at just €90. Ferroalloy prices on the markets are rising too and during the summer, OFZ has been running at full throttle. The current power prices, though, would translate into huge losses. The 400-strong company is demanding compensation for high emission allowance prices. In 2019-20, OFZ posted a €14.1m loss and last year, its sales were down 29% to €89.9m.
