Poland's steel sector

During the month, Polish steelmakers produced 590,000 tons of steel

In January 2024, steelmaking companies in Poland increased steel production by 13.2% compared to the previous month, to 590 thousand tonnes. Thus, the country ranked 22nd in the global ranking of steel-producing countries (71) by the WorldSteel Association.

Compared to January 2023, Polish steelmakers increased steel production by 2.8% in January 2024.

Overall, steel production in the European Union in January 2024 decreased by 1.8% compared to January 2023 – to 3.9 million tonnes. Global steel production for the month totalled 148.1 million tonnes, down 1.6% y/y.

As a reminder, in 2023, Poland reduced steel production by 13.1% compared to 2022, to 6.44 million tonnes. Last year, the average monthly steel production in Poland was 536.42 thousand tonnes, while in 2022 the figure was 617.25 thousand tonnes (-13.09% y/y).

Steel production in the EU countries totalled 126.3 million tonnes in 2023, down 7.4% y/y.

There are 6 steel plants in Poland, including ArcelorMittal Warszawa (0.75 million tonnes of steel per year), Celsa Huta Ostrowiec (0.9 million tonnes per annum), Liberty Czestochowa (0.84 million tonnes per annum), CMC Zawiercie (1.7 million tonnes per annum), ArcelorMittal Dąbrowa Górnicza (5 million tonnes per annum), and Ferrostal Labedy Gliwice (0.5 million tonnes per annum).

The total capacity of the plants is 9.69 million tonnes per annum. Thus, in 2023, capacity utilisation was 66.4%.

The decline in steel production last year was due to the weak market conditions that have been observed since autumn 2022. The European steel industry is facing high production costs at a time when demand for domestic steel products is weak amid a flood of cheaper imported products. During the autumn and winter period, many companies limit their capacity to balance supply and demand and stabilise product prices.