In
May 2022, EU produced 12.9 mln tons of crude steel. This is 6.8% lower than in
the same month last year. TOP 10 EU countries by drop in steel production
include France (-12.3%), Croatia (-11.6%), Germany (-11.5%), Finland (-10.3%),
Netherlands (-10.2%), Spain (-10.2%), Bulgaria (-9.8%), Poland (-9.0%), Czechia
(-8.0%), Austria (-5.0%).
As of 27.07.2022, nine steel plants in EU fully or partially
paused steel production. In particular, two steel plants (Arvedi and
ArcelorMittal Warszawa) completely stopped production. Their annual crude steel
capacity is estimated at 4.8 mln tons. Salzgitter postponed the restart of the
blast furnace until September, while previously this re-launch was planned for
May-June.
EU steel plants suffer from weak demand, falling steel prices
and rising energy costs. Next winter the EU may face a gas shortage, which will
negatively affect the local industry. Energy price growth is expected to continue
this year. So, more and more steel plants will be forced to reduce production.