Spanish crude steel production fell 19% year on year to 1.02 million mt in September, taking underlying production to a 16-month low, according to data published by industry group Unesid Nov. 3.
Production over the last 12 months, which accounts for seasonal slowdowns, was 13.5 million mt, the lowest since the 12 months to May 2021, the data showed.
Despite government measures implemented in June to reduce the impact of energy costs, a number of producers will continue production cuts into the fourth quarter.
Among these are ArcelorMIttal Spain, which agreed Sep. 30 to a temporary layoff scheme until year-end that will impact workers in line with production — 25% at the 4.5 million mt/year Asturias plant and 40% at the Sagunto cold-rolling, galvanized steel site, 20% at the Etxebarri steel plate site, 60% at the Lesaka finishings site and 20% at the longs site in Olaberria, according to the UGT FICA Union.
Also, Ferroglobe told S&P Global Commodity Insights Oct. 25 it would extend a temporary layoff plan at its Sabon, Boo and Monzon production factories from November potentially until 2024, having already temporarily shut down the furnaces at all three and reduced activity to a minimum.
“The existing situation and the lack of prospects for improvement of the energy problem has forced the company to take this decision,” the company said.
Platts assessed hot-rolled coil CIF Antwerp at a midpoint Eur625/mt Nov. 2, up Eur5/mt on the day. Platts is part of S&P Global Commodity Insights.
In terms of scrap recycling, Spanish volume in September was down 23% year on year to 788,000 mt, with the trailing 12-month total at 10.3 million mt, its lowest since the year to April 2021, Unesid figures showed.
— Gianluca Baratti