“The company was faced with economic difficulties in maintaining the operation of its plant in Hundear due to the unstable cost of electricity in Romania,” the representative said. “The current structure of energy pricing has created an almost impossible environment for industrial activity, threatening not only the viability of such enterprises, but also potentially affecting the economic stability of the Hundyoara region.”
ArcelorMittal suspended production at its steel factory in Hundoara (Romania) from February 14 to March 30 due to high domestic energy prices
The spa prices for electricity in Romania were one of the highest in Europe over the past 18 months. In addition, electricity tax in Romania, including distribution costs, is 184 lei/MW · h ($ 38.72/MW · h). “In addition, the contractual penalty imposed for the failure to use the purchased electricity has grown more than three times in the last year,” said Arcelormittal.
In December, Arcelormittal Hunedoara introduced partial production stops to reduce costs. Since then, production has been working with interruptions, depending on daily energy prices. If prices reach a peak, on this day production is not carried out, according to a note by Arcelormittal.
Arcelormittal Hunedoara is also looking for support from the Romania government to solve problems affecting the activities of the enterprise and its employees.
At the factory in HUNEDOAR there is a mini-zavod with an electric arc stove, a bucket stove, one continuous spill machine and a variety-rolling village. According to the latest report by Arcelormittal, in 2023 the company produced 200,000 tons of raw steel.
Platts estimated the domestic prices for a hot rolled roll in north-western Europe in 600 euro/t Franco-West in the Ruura on February 14, not changing in the day.
