In
October 2022, Spanish steel companies reduced steel production by 9.6% compared
to the previous month – to 913 thousand tons. This is evidenced by Worldsteel
Association’s data.
On an
annuale basis, steel production in Spain fell by 29% in October 2022.
In
January-October 2022, steel production in the country amounted to 9.915 million
tons, which is 18.5% less than in the same period of 2021.
In
general, the production of steel in the countries of the European Union in
October 2022 fell by 17.5% compared to October last year – to 11.29 million
tons. In January-October 2022, the indicator decreased by 9.2% y/y – to 117.1
million tons.
In
2021, Spain increased production of steel by 27.7% compared to 2020 – up to 11
million tons. The country took 16th place in the global ranking of WorldSteel
steel producers.
As
GMK Center reported earlier, European steelmakers are massively reducing or
stopping production against the background of rising electricity tariffs. At
the same time, the European market is filled with imported steel products,
which attract consumers by lower prices than local ones. Countries that supply
cheap steel to the EU market do not pay emissions taxes and receive cheaper
electricity than European producers. Because of this, the demand for European
rolled steel fell, and production costs rose sharply.
The leading steel producer ArcelorMittal
has temporarily stopped or announced the stoppage of about 7 million tons of
the corporation’s annual capacity across Europe. Among them is the Spanish rolling
mill Acería Compacta de Bizkaia (ACB). The company decided not resume work after summer maintenance.
From September 6, 2022, the Spanish
ferroalloy producer Ferroatlántica also stopped two operating furnaces at the plant in Bou de Guarniso. The plant’s units are
stopped for an indefinite period of time – possibly until the price per
megawatt of electricity is controlled.
Government of Spain made a plan actions in the event of an energy
crisis and guaranteed the domestic steel sector that it will provide the
industry with the amount of energy resources necessary for its operation.