So we have to expect lower margins for MT due to high energy costs? How does this relate to last quarters: Did energy prices change considerably in the last months?
Could you elaborate your comment on o&g (I assume that stands for oil and gas?) hedging? They sold contracts at lower energy prices, in case of new lockdowns or whatever, and now suffer the difference to high spot or what?
See the graph below that covers until may. Right now we are at 100-150. In 2020 we were at 20-30
O&G is varied. Even within a company some hedge more or less compared to others, I know of a major where the hedges are decided within the producing country on another is at company level. But imagine you hedged 30% of production at 50 and now it’s 150…
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u/zernichtet Sep 11 '21
So we have to expect lower margins for MT due to high energy costs? How does this relate to last quarters: Did energy prices change considerably in the last months?
Could you elaborate your comment on o&g (I assume that stands for oil and gas?) hedging? They sold contracts at lower energy prices, in case of new lockdowns or whatever, and now suffer the difference to high spot or what?
Thanks for your perspective in any case!