ArcelorMittal has raised doubts over its current industrial configuration in Spain, sparking concern over the future of its plants in Asturias. The company has joined other sector participants’ criticism of the EU’s Steel & Metals Action Plan for its lack of effectiveness.
“The situation is unsustainable. We have no short-term visibility on the market situation and need real and quick measures from the European Union,” a company spokesperson tells Kallanish.
Blast furnace A at the Gijón mill in northern Spain is near the end of its operational life, with an extension requiring major investment deemed unfeasible in current market conditions. BF B will enter maintenance shutdown next week, while Sinter plant A is scheduled to cease activity before 31 December, in line with environmental commitments to the Asturias authorities. These changes will force the company to import material, raising production costs and challenging the viability of BF operations.
The situation in Spain is similar to that of the overall European sector, with demand and sales prices depressed due to the high volume of non-EU imports that do not pay CO2 emission taxes. The sector is urging a review of the safeguard measures and the CBAM mechanism, in line with Eurofer demands.
“The incapability of finding an agreement on steel and the vagueness of the US-EU Joint Statement on trade is detrimental to our producers, who remain subject to a 50% tariff and de facto cut off from their second export market. It’s everything but the certainty we need in these already turbulent times,” Eurofer director general Axel Eggert said during the publication of Eurofer’s latest economic and steel market outlook (see Kallanish passim).
“With cheap imports continuing to be diverted to the EU, we cannot help but fear further closures and layoffs – including in our downstream sectors – with the irreversible loss of strategic EU assets to the benefit of our direct competitors in the US, Asia, North Africa and the Middle East,” he added.
Todor Kirkov Bulgaria
