Liberty Galati faces technical setback days after relighting BF No5
Operations at rolling mills were scheduled to commence next week using feedstock that has already been produced.
On June 12, BF No5 was stopped due to a technical failure, just days after it was restarted following more than a year of downtime, multiple source told Fastmarkets.
The accident overnight June 12 involved a detached “salamander” – a solid accumulation of molten iron and slag – that broke free and blocked the furnace’s drain outlets. This forced an emergency shutdown, sources familiar with the matter said.
They added that production could resume after the blockage was cleared if no further damage were found.
Liberty did not comment on the nature of the accident, noting out that its plan was to resume steel production at Galati as planned.
“The blast furnace is in the process of increasing and stabilizing production,” Liberty’s spokesperson told Fastmarkets on June 13. “During this phase, technical adjustments are necessary, and our team is focused on managing safely a technical issue caused by the rapid cooling of the liquids, which will be resolved soon.
“With raw materials in stock and a solid supply chain, Liberty Galați continues to produce high-quality steel and will start deliveries to customers,” the spokesperson added.
Despite the accident, plans to resume rolling mill operations seemed to be unaffected, and volumes of semi-finished steel products have already been accumulated.
“Liberty Galați successfully started its production operations last week, including the blast furnace, sinter plant and steel shop, and it has already produced more than 15,000 tonnes of slab for rolling, to commence next week,” the spokesperson said.
The company restarted BF No5 on June 4 [LINK]. The equipment was idled in May 2024 amid difficult market conditions.
The Galati steelworks, islocated on the west bank of the River Danube, in southeastern Romania. It has capacity for 3.5 million tonnes per year of hot-rolled coil, 1 million tpy of cold-rolled coil, 1.2 million tpy of steel plate and 350,000 tpy of hot-dipped galvanized coil, according to Fastmarkets’ information.
The company has five BFs with combined capacity for more than 6 million tpy of pig iron, but at present only the 2 million-tpy BF No5 is in operation.
Longs suppliers in Romania keep offers stable, local demand still limited
Following the election held last weekend, which resulted in stable currency exchange rate levels, Romanian long steel spot traders have opted to keep prices unchanged week on week.
However, in terms of trading activities, players stated that local demand has not demonstrated any improvement and has remained steady, albeit at limited levels, this week.
On the other hand, the sole Romanian rebar producer which is not presently producing has no new offers, so the previous offers have continued to be heard, but, according to sources, there is not much interest in the sole producer owing to a lack of essential materials.
Currently, the majority of traders have kept their rebar prices unchanged week on week at €595-610/mt ex-warehouse, with their wire rod offers stable at €580-595/mt ex-warehouse. Meanwhile, as previously stated, the sole Romanian rebar producer has not made any fresh offers, and earlier offers of roughly €590-605/mt ex-works continue to be heard in the market, stable week on week.
Furthermore, there have been some import offers this week, though interest from Romanian traders has remained minimal. According to sources, offers for rebar from Bulgaria have remained stable at €610-630/mt CPT. Likewise, Egypt has also kept its rebar and wire rod offer prices unchanged at €510-520/mt CPT and €535-545/mt CPT, respectively. Greece, on the other hand, has offered rebar and wire rod at €605/mt CFR and €595/mt CFR, respectively. Meanwhile, Turkey’s average rebar price has also remained stable week on week at €515-530/mt CFR Romania, with a €1 = $1.13 exchange rate and around €25-30/mt freight.
Romanian longs prices unchanged amid market uncertainty caused by currency swings
Following the Romanian presidential election which caused currency fluctuations and market uncertainty, the majority of long steel traders and the sole domestic rebar producer have decided to hold offers unchanged compared to last week and to just monitor the market.
However, given the changes in currency rates, many participants believe that some upward adjustments in long steel prices may occur. Meanwhile, some suppliers believe that, owing to the ongoing weaker demand, price adjustments may not be supported by buyers.
“Romania’s unstable political situation has resulted in extremely low sales this week. Following the first round results, the euro and US dollar exchange rates will be updated for pricing in lei, and long steel prices will be adjusted in the coming days to reflect the new exchange rate. Considering the low sales volumes and the unstable political climate, I personally believe that neither price rises nor even customer acceptance of such levels are likely,” a trader said SteelOrbis
As a result, the sole local producer’s rebar pricing is unchanged week on week at €590-605/mt ex-works. Similarly, the retail prices of rebar in Romania are stable at €610-620/mt ex-warehouse since last week.
In the wire rod segment, a similar scenario has occurred due to the current uncertainty. The majority of traders offered wire rod prices at unchanged levels of €580-595/mt ex-warehouse.
Meanwhile, as regards imports, Bulgarian suppliers have reduced rebar offers by €10/mt to €610-630/mt CPT, while ex-Egypt rebar and wire rod prices remain stable from the previous week at €530-535/mt CPT and €535-540/mt CPT, respectively. In contrast, ex-Turkey offers have increased as mills’ export offers have been quoted at $540-550/mt FOB, and, with the current currency rate of €1 = $1.13, prices for delivery to Romania are now at €505-515/mt CFR, up from €495-515/mt CFR last week.
Longs prices in Romania stable despite slow trade
Despite the last week’s announcement of lower tariff-rate quota volumes, which had some impact on wire rod segment pricing, this week no price movements have been seen in spot market prices of rebar and wire rod in Romania.
The sole rebar manufacturer has also kept prices stable week on week. The market’s present outlook, according to market participants, is not supportive of an upward trend since the demand sector is not robust enough to sustain increases. Meanwhile, in the import segment, no new deals have been reported since the majority of buyers anticipate a new quota period.
As a result, local Romanian rebar spot prices have remained stable at €590-605/mt ex-warehouse from last week. Similarly, rebar pricing from the sole domestic mill is stable at roughly €580-590/mt ex-works.
A similar stability has been observed in the wire rod segment, with retail prices quoted stable week on week at €595-600/mt ex-warehouse.
Furthermore, as previously stated, no fresh deals have been recorded in the import market since purchasers are not in a hurry to restock due to the upcoming new quota period, and demand in the domestic market remains low.
According to reports, Bulgaria’s rebar offers have remained stable at €620-630/mt CPT, while Greece’s rebar and wire rod offers are stable week on week at €620-625/mt CFR and €610-615/mt CFR, respectively.
Similarly, Egypt’s rebar and wire rod offers have not changed since last week, at €550-555/mt CPT and €560-565/mt CPT, respectively.
In addition, Turkey’s rebar offers are stable at around €555-570/mt CFR Romania, based on a €1 = $1.08 exchange rate and a freight cost of €25-30/mt.
Romanian longs prices stable, but rises anticipated due to reduced quota
Following the European Commission’s announcement of decreased tariff-rate quota volumes, the Romanian long steel market has begun to anticipate increased domestic market price movement.
However, no price swings have occurred in Romania, and offers from Romania’s sole rebar producer and traders have remained stable over the last week. On the other hand, with the announcement of quota reductions, some traders anticipate difficult times for the domestic market, while others are keeping an eye on how the market adjusts.
Currently, the sole Romanian rebar producer’s prices have remained stable week on week at around €580-590/mt ex-works, while most traders have kept their rebar prices unchanged week on week at €590-605/mt ex-warehouse, with their wire rod offers stable at €570-595/mt ex-warehouse.
Meanwhile, in the import market, after Turkey sold some rebar to Romania in the previous week at $555-560/mt FOB, Romanian buyers have remained silent on imports this week, probably due to their sufficient supply and recent EU quota changes. However, this week, Turkey’s average rebar price has increased by €5/mt to €545-560/mt CFR Romania, based on a €1 = $1.09 exchange rate and a freight cost of €25-30/mt. In contrast, Bulgaria’s rebar offers have remained stable week on week at €620-630/mt CPT. In addition, Egypt, which had been missing for a few weeks, has returned to the market this week, offering rebar and wire rod at €550-555/mt CPT and €560-565/mt CPT, respectively.
ArcelorMittal halts steel output at Romanian Hunedoara mill on high energy costs
ArcelorMittal has paused production at its Hunedoara steelworks in Romania from Feb. 14 until March 30 due to high domestic energy costs, a company spokesperson told Platts, part of S&P Global Commodity Insights, on Feb. 17.
“The company has been facing economic challenges in maintaining the operations of its mill at Hunedoara, due to the unsustainable cost of electricity in Romania,“ the spokesperson said. “The current energy pricing structure has created a near-impossible environment for industrial activities, threatening not only the viability of such businesses but also potentially affecting the economic stability of the Hunedoara region.”
Romania’s spot electricity prices have ranked among the highest in Europe over the past 18 months. Furthermore, the tax on electricity in Romania, including distribution costs, stands at Lei 184/MWh ($38.72/MWh). “In addition, the contractual penalty imposed for non-use of electricity purchased has increased by more than three times in the past year,” ArcelorMittal said.
In December ArcelorMittal Hunedoara introduced partial production stoppages to reduce costs. Since then, production has been running intermittently, determined by daily energy prices. If prices peak, there is no production on that day, ArcelorMittal said in the note.
ArcelorMittal Hunedoara is also seeking the support of the Romanian government to address the issues affecting the site’s operations and its employees.
The Hunedoara site comprises a mini-mill with an electric arc furnace, a ladle furnace, one continuous caster and a section rolling mill. According to the latest report from ArcelorMittal, the company produced 200.000 mt of crude steel in 2023.
Platts, part of S&P Global Commodity Insights, assessed Northwest European domestic HRC at Eur600/mt ex-works Ruhr Feb. 14, unchanged day over day.
Romania’s Donalam urges state support amid low-priced imports
Beltrame’s Romania-based Donalam unit, with steel mills in Calarasi and Targoviste, is sounding the alarm to authorities regarding what it says is a crisis in the steel industry, Kallanish notes.
The sector is experiencing its most difficult period in decades, facing challenges that endanger the survival of local producers, the enterprise claims.
“Massive imports of cheap steel from outside the EU, from Turkey, China, Egypt, and the Maghreb states, have surged by 27% on-year in 2024, suffocating European producers, who are required to comply with strict environmental standards and bear significantly higher production costs,” Donalam says.
“While the European Union passively watches the collapse of its steel industry, other countries, like the US and China, are taking concrete measures to protect its producers. For instance, the 25% tariffs imposed by Donald Trump on steel imports, with no exceptions or exemptions, demonstrate a strategic approach to safeguarding the domestic economy,” it adds.
The EU, on the other hand, remains vulnerable, lacking comparable protective policies, exposing its industry to unfair competition and dumping. Without urgent action, Europe risks becoming dependent on imports from outside the bloc, to the detriment of its own producers, the firm warns.
Industrial consumers in Romania meanwhile pay the highest final electricity prices in the EU, a real competitive handicap, Donalam continues.
“In January, the final energy price paid by an industrial consumer was €139/MWh ($145), while in Italy it was €71/MWh, in France €56/MWh, and in Bulgaria, it was capped at €108/MWh. Given that in Romania, by mid-February, we are witnessing a dramatic increase in the spot price of active energy to approximately €200/MWh, the urgent need for the implementation of a solid state aid scheme capable of genuinely protecting the industry against the explosion of energy prices becomes evident,” Donalam adds.
“We emphasise that Romania is the only EU country where such state support does not exist, after the war in Ukraine and global instability have led to a dramatic increase in raw material costs and severe supply chain disruptions, significantly impacting production,” the producer notes. “The absurdity reaches a new level, after Romanian exports enormous quantities of scrap metal to non-EU countries every year, only to later import finished products made from the same material at dumping prices.”
Despite an unfavourable market, Donalam says it remains committed to its long-term strategic objectives for Romania, focusing on investments in equipment modernisation and increased production efficiency. It invested nearly €20 million in 2024 alone, using its own resources.
“These are a clear testament to our commitment to transforming Donalam into a leading steel producer in Europe, both in the special steels segment and in rebar output,” says Donalam chief executive Carlo Beltrame. “What we want to emphasise is that heavy industry needs real and immediate state support and protection to remain competitive. Additionally, solutions must be found to limit the access of dumping-priced steel products to the Romanian market.”
Svetoslav Abrossimov Bulgaria
Flat steel spot prices in Romania stable but trade slow
Despite the weakness that has been present in the market for some time, Romanian flat steel traders have kept prices stable week on week.
On the other hand, according to reports, the sole domestic flat steel producer has yet to begin production, although offers and sales are still heard for March shipment. However, according to market speculation, the sole flat steel producer is still facing economic challenges and delays in completing deliveries despite receiving government assistance.
Currently, prices for domestic origin hot rolled coil (HRC) in Romania have remained stable week on week at €590-600/mt CPT. Likewise, traders’ prices for hot rolled sheets (HRS) and cold rolled sheets (CRS) have remained unchanged week on week at €725-750/mt ex-warehouse and €835-850/mt ex-warehouse, respectively.
Meanwhile, while no new import deals have been announced, HRS and CRS offers from Ukrainian suppliers have remained stable week on week at €650-660/mt DAP and €740-750/mt DAP, respectively. Turkish mills, on the other hand, have raised their offers somewhat compared to last week, with FOB prices ranging from $530 to 540/mt, freight costs of roughly €25/mt, coming to Romania at around €535-545/mt CFR.
ArcelorMittal Hunedoara reduces production amid lack of orders
Romania-based ArcelorMittal Hunedoara has reduced production from 9 December until the end of the year due to a lack of orders, the firm says in a statement filed with the Bucharest Stock Exchange.
“In accordance with the provisions of law and regulation, we inform you of the temporary reduction of the company’s activity,” the message says. “This has been made considering the economic difficulties faced by the company caused by the lack of orders.”
Employees affected by the move will be paid 75% of their base salaries during this period, it adds.
ArcelorMittal did not reply to Kallanish request for comment.
The Romanian firm took similar measures in 2022, also due to a lack of orders.
In 2020, it also stopped production temporarily due to the Covid pandemic.
Electric arc furnace-based Hunedoara, part of the ArcelorMittal Europe – Long Products division, produces sections, billet and merchant bar, employing 584 people and some contractors. The firm produces 200,000-300,000 tonnes/year of crude steel.
Hunedoara remained part of ArcelorMittal after the steelmaking group sold its flagship Romanian Galati steelworks to Liberty Steel in 2019.
Svetoslav Abrossimov Bulgaria
Turkey’s Borusan Pipe commissions Romania service centre
Borusan Pipe, a major Turkish steel pipe producer, has commissioned its second-largest investment in Europe, in Ploieşti, southern Romania.
At an investment of €15 million ($16.6m according to 13 September exchange rate), the facility, for which construction work began in March 2023, will carry out cutting and finishing operations of cylinder tubes, reserve tubes, and monotubes for special use in shock absorbers. The unit, which will produce using technologies such as short-cutting, brushing, and in-line washing, will serve shock absorber manufacturers in the automotive supply chain.
The Romanian government supported Borusan Pipe’s investment with state aid of €5.83m, notes Kallanish.
The Romania service centre is expected to contribute $8m to the company’s total turnover in the second half of the year as it gradually begins operations.
“Another significant step towards our goal of being a local player in international markets is the inauguration of our new service centre in Romania,” says Borusan Pipe executive vice present Ali Okyay. “Being a regional player in Europe, we will be near our clients and offer the required supply chain flexibility. Through this investment, we will get closer to our goal of becoming the continent’s pre-eminent integrative solution provider and producer of steel pipes, particularly in eastern Europe.”
Burcak Alpman Turkey
