Spain increased steel production by 50% m/m in September 2022

In January-September 2022, Spanish steelmakers produced 9 million tons of steel

In September 2022, Spanish steel companies increased steel production by 50.1% compared to the previous month – to 1.01 million tons. SteelOrbis reports about it with the reference to the Spanish Association of Steel Producers UNESID.

Compared to September 2021, in September 2022 steel production in Spain decreased by 19%. During January-September 2022, steel production in the country amounted to 9 million tons.

In September 2022, the Spanish steel industry processed 778 thousand tons of scrap, which will be used for the production of steel products. This is 86.1% more compared to August 2022 and 23% less than in September 2021. In January-September 2022, Spanish steelmakers processed 6.76 million tons of scrap metal.

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.

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.