ArcelorMittal questions the viability of Spanish businesses
ArcelorMittal has expressed doubts about its current industrial configuration in Spain, raising concerns about the future of its plants in Asturias. The company joined the criticism of the EU Steel and Metals Action Plan by other sector participants for its lack of effectiveness.
"The situation is unstable. We don't have a clear picture of the market situation in the short term, and we need real and swift action from the European Union," says a Kallanish company representative.
The life of blast furnace A at the Gijona plant in northern Spain is coming to an end, and its extension requires significant investments. it is not feasible in the current market conditions. Next week, sinter plant B will be shut down for maintenance, while sinter Plant A must cease operations by December 31 in accordance with environmental obligations to the Asturian authorities. These changes will force the company to import materials, which will increase production costs and jeopardize the viability of BF's operations.
The situation in Spain is similar to the situation in the European sector as a whole: demand and selling prices are reduced due to the large volume of unpaid imports from non-EU countries with taxes on CO2 emissions. Industry representatives insist on reviewing the protective measures and the CBAM mechanism in accordance with Eurofer requirements.
"The inability to reach an agreement on steel and the vagueness of the US-EU joint statement on trade are hurting our producers, who are still subject to a 50% cap. They are also de facto cut off from their second export market. In these already turbulent times, we need everything but certainty," Eurofer CEO Axel Eggert said during the publication of the latest Eurofer economic review and steel market forecast (see Kallanish passim).
"As cheap imports continue to flow into the EU, we cannot but fear further closures and layoffs – including in our processing industries – with the irreversible loss of strategic assets in the EU in favor of our direct competitors in the United States, Asia, North Africa and the Middle East," he added.
Todor Kirkov Bulgaria
Kallanish.com