This temporary shutdown involves four ArcelorMittal blast furnaces located in Gijón, Bremen, Dunkirk and Dabrowa Górnicza. The restrictive move comes as demand weakens and input costs rise, leading to a reduction in pig iron production across Europe in the coming quarter. The company anticipates a drop of around 1.5 million tons, equal to about 17.4 percent of its production in the same period a year earlier.
The Asturias region faces a potential loss of 400,000 to 600,000 tons in the next quarter. It is expected that the inactivity at the Gijón facility will persist as the group adapts to current market conditions.
Veriña’s two blast furnaces have been operating at well below capacity, currently running at under 70 percent of a combined capacity estimated at 4.7 million tons per year.
The company does not intend to import slabs from other plants to offset the lower pig iron availability. Instead, it plans to manage the oversupply of finished products in Europe by adjusting production in line with demand and the significant influx of inexpensive imports that has affected the European market.
Geert Van Poelvoorde, CEO of ArcelorMittal Europe, wrote to the company’s staff on a Wednesday note that customer trust levels are now lower than those seen during the Covid-19 crisis in 2020. He also highlighted in his message that the steel sector faces a real risk of a prolonged recession in Europe driven by the energy crisis. This assessment aligns with statements from other multinational sources reported by Reuters.
In addition to the four furnace shutdowns in Spain, France, Germany and Poland, the group has extended downtime at the Sestao steelworks and will pause direct reduction of iron ore in its Hamburg facility. Other plants in France, Germany and Luxembourg will implement various harmonization measures. In Spain, the shutdown will have a gradual effect, influencing workshops and finishing plants at the Avilés, Sagunto, Etxebarri, Lesaka and Legasa sites.