Energy is one of the main costs in the manufacturing of steel abrasives.
Energy prices (natural gas, coal, electricity, oil products) were moving historically more or less parallel to the oil price. However we observed in the past few years more and more volatility and tension on European energy and power markets, with an energy mix evolution creating some tariff distortion at energy producers.
More recently - with anticipations on changes of ETS (Emission Trading System), with oil & gas price increases, with energy tax evolution, and with structural issues at energy producers in main countries such as France and Germany - the European Electricity prices for the year ahead are trading 50% higher than last year.
These current cost dynamics force Winoa to implement a price adjustment to continue providing customer the top quality products and services they have grown to expect.