Thanks for starting this conversation, @Emily Dampster! 👏 You’ve raised an important point about Europe’s commodity markets.
Curious to hear what others think—how are you all seeing this play out in your markets?
Hot topic (pun intended)
While not a direct supply chain issue, the early July heatwave had a notable impact on Europe’s electricity markets that’s worth highlighting in the broader context of climate-driven disruptions.
The intense heat wave between July 8 and 10 led to a sharp increase in electricity demand across much of Europe, particularly in countries like France, Italy, and Spain. As temperatures soared, cooling demand surged, driving up electricity consumption during peak hours. At the same time, solar generation struggled in some regions due to reduced panel efficiency at very high temperatures, and wind generation remained relatively low.
This combination of higher demand and lower renewable generation pushed spot prices up significantly in several markets. In Spain and Portugal, prices rose by 28%, reaching levels not seen since early March. Other markets like Italy, France, and Germany also saw price increases of between 10% and 20%.
It's not a physical supply chain disruption, but it underscores how climate extremes can create volatility across commodity markets. The impact on industrial activity, energy procurement and cross-border flows can pose a supply chain risk.
@Oriol_Salto_i_Bauza thank you for sharing your thoughts on this topic!
