> "It is also clear that many energy-heavy industries will have to stop their operations – such as fertilizer manufacturers, steel and concrete makers, glass works, and chemical plants."
Would they stop their operations or pass the higher prices downstream throughout the economy?
I believe, they might have to stop, if not by their own decision, then being told so. In the scenario, we are discussing there is just not enough gas, something has to give. There almost certainly will be some form of rationing.
In a milder scenario, I think the prices for their outputs might be sticky. They would go up, but not enough to make these manufacturers break even, so there will be a situation of high prices but still a shortage and long waiting lists and delivery times, and probably secondary markets with even higher prices.
> "It is also clear that many energy-heavy industries will have to stop their operations – such as fertilizer manufacturers, steel and concrete makers, glass works, and chemical plants."
Would they stop their operations or pass the higher prices downstream throughout the economy?
I believe, they might have to stop, if not by their own decision, then being told so. In the scenario, we are discussing there is just not enough gas, something has to give. There almost certainly will be some form of rationing.
In a milder scenario, I think the prices for their outputs might be sticky. They would go up, but not enough to make these manufacturers break even, so there will be a situation of high prices but still a shortage and long waiting lists and delivery times, and probably secondary markets with even higher prices.