High electricity costs hit activity at Megasa: sources

High electricity costs are impacting all steelmakers across Europe, both integrated and electric arc furnace-based. On the Iberian Peninsula, EAF-based Megasa is limiting steelmaking activity in Spain and Portugal to periods when conditions are more favourable.

In Spain, the company is evaluating production schedules from day to day. According to local press reports, this has led the company to recently stop production completely on certain days when electricity costs peak, Kallanish notes.

In Portugal, it is halting production during night shifts due to high electricity and gas costs. At the same time, it is calling for the local government to take action in favour of large energy consumers that are bearing the brunt of the energy crisis.

Megasa was unavailable for comment on Tuesday.

In March, Megasa stopped activities at its mills in Spain and Portugal amid the spike in energy prices, but the stoppage was limited to a few days.

During the first seven months of this year, Spain saw crude steel production fall by almost 14% year-on-year to 7.3 million tonnes. This was the second-largest fall recorded in Europe after Finland with 16.5% y-o-y.

Emanuele Norsa Italy