Spain reduced steel production by 9.6% m/m in October 2022

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.