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Czech metallurgical plant in Ostrava faces shutdown due to "difficulties in the market"

Europe / Ferrous metallurgy

Since the beginning of April, prices for hot rolled coil in the northwestern part of the EU have fallen by almost 20 euros per tonne, while the Italian general daily index has fallen by 33 euros per tonne over the same period, partly due to falling prices in Asia, noted in Argus.

Czech metallurgical plant in Ostrava faces shutdown due to "difficulties in the market"

The European steel market is "challenging," a spokesman for Liberty Steel Group told Argus when asked if the Ostrava plant in the Czech Republic is delaying payments to suppliers.

According to market sources, the Ostrava steel plant is delaying payments to its local energy supplier, Tameh Czech.

Liberty said that despite the difficulties, it "worked proactively with suppliers and customers to ensure that Ostrava's operations were not affected." Patrick Schober, media spokesman for Tameh Czech, said the companies were "talking" but declined to comment.

A Liberty spokesman said he would not comment on his dealings with individual suppliers. Sources suggest that Liberty is also behind on payments to raw material suppliers for its European plants.

While coil prices have risen in recent months, they have fallen over the past few weeks and demand has been very low despite major production disruptions and long delivery times from local suppliers.

Service centers across Europe are struggling to pass on higher costs to their customers, increasingly limiting their ability to pay higher rates. Low import prices further curb demand.

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