Spain reduced steel production by 10.6% y/y in February

During January-February, Spanish steelmakers increased steel output by 2.6% y/y

In February 2024, Spanish steelmakers reduced steel production by 10.6% compared to the same month in 2023, to 890 thousand tons. Thus, the country was ranked 17th in the global ranking of steel producing countries (71) by the WorldSteel Association.

In February, Spanish steelmakers cut steel production by 6.3% compared to January this year.

In January-February 2024, Spain increased steel production by 2.6% compared to the same period in 2023, to 1.84 million tons.

Overall, steel production in the European Union in January-February 2024 decreased by 0.9% compared to January-February 2023 – to 21.1 million tons. Global steel production for 2 months amounted to 306.9 million tons, up 3% 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).

There are 17 steel enterprises 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 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 tce), Hydnum Steel Castilla-La Mancha (600 tce), Grupo Gallardo Siderurgica Balboa Jerez de los Caballeros (1.3 million tce), Riva Siderurgica Sevillana (1.3 million tce), Acerinox Europa Los Barrios (1.2 million tce).

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 fall and winter, many companies are limiting their capacity to balance supply and demand and stabilize prices.