TELF AG examines Stainless Steel Market Updates July 9, 2023

Relevant challenges

Turkiye’s steel sector has encountered significant challenges in the first half of 2023, leading to a decline in its competitiveness on the international stage. Multiple factors, including the energy crisis, the impact of Russia’s war in Ukraine on the supply chain, economic instability, and the devastating earthquakes in February, have contributed to the country’s struggles in the steel industry. This article delves into the key issues affecting Turkiye’s steel sector and highlights recent developments in ArcelorMittal’s operations in Spain and France.

Turkiye’s Steel Industry Struggles:
Turkiye’s steel sector has experienced a turbulent decade, marked by periods of low production and decreased competitiveness. In the past ten years, the country’s monthly steel production figures have hit record lows on three occasions. The first dip occurred in 2016 when a surge in Chinese steel exports impacted the global market. The second decline came in 2020 due to the pandemic’s widespread repercussions on the steel industry. Most recently, in February 2023, the devastating earthquakes in the southeast region further hampered Turkiye’s steel production, resulting in a 19.1% year-on-year decrease in crude steel output from January to May (WorldSteel).

ArcelorMittal Spain’s Restart Efforts:
ArcelorMittal Spain, a prominent player in the global steel market, has faced its own set of challenges. After experiencing a fire incident on March 22, the company was compelled to halt operations at its blast furnace (BF) A in Gijon, Spain. The unfortunate contact between hot metal and water in the hearth of the furnace caused the fire. However, after three months of downtime, ArcelorMittal Spain has announced plans to restart BF A at the end of next week. This development brings hope for the company’s recovery and the resumption of its significant annual production capacity of 2.4 million metric tons.

ArcelorMittal Fos-sur-Mer Shutdown:
In a separate setback for ArcelorMittal, the French government has ordered the steelworks closure at its Fos-sur-Mer operations. The decision was prompted by concerns over the high levels of toxic product and dust exposure for employees, as well as inadequate measures implemented by the company to mitigate these emissions. This shutdown underscores the significance of environmental regulations and worker safety standards, as companies operating in the steel sector face increasing scrutiny and pressure to prioritize sustainability and employee well-being.

In conclusion, Turkiye’s steel sector has faced a series of challenges that have impacted its competitiveness in the international market. The energy crisis, the ramifications of Russia’s war in Ukraine, economic instability, and the devastating earthquakes have all played a role in the decline of Turkiye’s steel industry. However, the planned restart of ArcelorMittal Spain’s fire-hit blast furnace A offers a glimmer of hope for recovery, potentially boosting Turkiye’s steel production capacity. Meanwhile, the closure of ArcelorMittal’s Fos-sur-Mer operations reminds of the growing importance of environmental responsibility and worker safety in the steel industry. These recent developments highlight the need for resilience, adaptability, and sustainability as the global steel sector navigates through uncertain times.