Spain increased steel production by 33.4% m/m in January

In January 2024, Spanish steel companies increased steel production by 33.4% compared to the previous month, up to 950 thousand tons. Thus, the country was ranked 17th in the global ranking of steel-producing countries (71) by the WorldSteel Association.

Compared to January 2023, Spanish steelmakers increased steel production by 18.9% in January this year.

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

As GMK Center reported earlier, in 2023, Spain reduced steel production by 2.7% compared to 2022, to 11.26 million tons. The average monthly steel production amounted to 938.5 thousand tons, while in the same period of 2022 the figure was 964.42 thousand tons (-2.69% y/y).

Steel production in the European Union amounted to 126.3 million tons in 2023, down 7.4% y/y.

There are 17 steel mills in Spain: Megasa Siderúrgica Narón (capacity of 700 thousand tons of steel per year), ArcelorMittal Asturias (1.2 million tons per year), ArcelorMittal Olaberria-Bergara (4.2 million tons per year), ArcelorMittal Asturias steel plant DRI and EAF expansion (1.1 million tons per year), Celsa Global Steel Wire Santander (750 thousand tons per year), ArcelorMittal Santander (1.2 million tons per year), ArcelorMittal Sestao (2 million tons/y), Sidenor Aceros Especiales Basuri (740 thousand tons/y), Celsa Global Steel Wire Santander (750 thousand tons/y), Celsa Global Steel Wire Santander (750 thousand tons/y), Celsa Nervacero (1 million t/y), ArcelorMittal Olaberria-Bergara (1.45 million t/y), Grupo Gallardo Corrugados Azpeitia (800 thousand t/y), Megasider Zaragoza (500 thousand t/y), Celsa Barcelona Castellbisbal (2.5 million t/y), Grupo Gallardo Corrugados Getafe (600 thousand t/y), Hydnasilk (600 thousand t/y), Hydnum Steel Castilla-La Mancha (600 thousand tons/y), Grupo Gallardo Siderurgica Balboa Jerez de los Caballeros (1.3 million tons/y), Riva Siderurgica Sevillana (1.3 million tons/y), Acerinox Europa Los Barrios (1.2 million tons/y).

The total capacity of the plants is 21.94 million tons per year. Thus, in 2023, capacity utilization was 51.3%.

Low steel production last year was due to the weak market conditions that have been observed since the fall of 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. In the autumn and winter, many companies limit their capacity to balance supply and demand and stabilize product prices.