Spanish Listed Companies Feel the Heat of Rising Energy Prices

ArcelorMittal's European business saw an improvement in results during the second quarter due to rising steel prices. This is partly because the company can pass on part of the increased production costs to consumers, provided that demand and protectionist policies allow it.

The main risk for ArcelorMittal is a decline in European steel demand, which would force production adjustments. The integrated steel industry consumes large amounts of electricity, natural gas, and coal, making it vulnerable to energy price shocks.

Acerinox, another listed company, also faces exposure due to its stainless steel production process, which uses significant amounts of electricity and gas. Although the majority of Acerinox's operating profit comes from the US market, giving it an advantage over industries concentrated in Europe, the increase in energy costs still affects its margin.

Other companies mentioned in the report include Vidrala, ERCROS, ENCE, Tubacex, Gestamp, and CIE Automotive. These businesses are also exposed to rising energy prices due to their reliance on electricity and gas for production processes.