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.