The wire rod train that ArcelorMittal has at its Veriña factory, in Xixón, will remain stopped for ten days starting this Friday while the steel mill will stop producing for nine days starting next Monday due to the lack of orders derived from the entry massive supply of steel products from third countries to the European Union and high energy prices.
The stoppage of the wire rod train between this Friday and October 27, both included, will affect about 180 workers at the Gijón factory, although not all will be affected by the temporary employment regulation file since many will be able to take breaks, vacations or pending medical examinations.
In the case of the steel mill, 280 employees will be affected to the same extent between October 20 and 28, as has already happened on other occasions throughout the year in which intermittent stoppages have been carried out. of the activity to adjust production to the market.
Steel production is planned based on the market situation and when the order book is very weak, and in order not to continue producing at a loss, given the small profit margins, the multinational schedules these intermittent stoppages.
At the moment, the high volumes of imports of cheap steel from third countries such as China, Turkey and other Asian countries, which have a “huge competitive advantage”, which do not pay for C02 emission rights and which have overcapacity in production which is distorting the market and causing low demand for Spanish steel.
Furthermore, Spanish steel sees its competitiveness affected by the differential in energy costs compared to that produced in other community states such as France or Germany, according to the multinational.
European employers ask for “urgent measures”
Two days ago, the European steel association Eurofer called on the leaders of the European Union to take “urgent measures” to revive a sector that is going through “its worst crisis” in more than a decade due to “global steel overcapacity,” the “unfair trade” and high energy prices.
The steel industry assures that if “urgent measures are not implemented, it will be difficult in most EU Member States to preserve a resilient and sustainable steel industry that can invest in our ambitious decarbonization projects for 2030 and beyond.”
“Steel production in the EU has decreased by 30% since 2008, reaching 126 million tonnes in 2023”, and restructuring has led “to the loss of almost 100,000 jobs in the last 15 years”, while the use of Capacity has fallen to “unviable” levels of 60%, steelmakers say.
They add that there is a steel overcapacity in the world of 551 million tons in 2023 to which, according to the OECD, another 157 million tons will be added by 2026, using “mainly very carbon-intensive conventional steel production technology.”
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