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Kallanish Kallanish

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October, 20th 2021

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OCT 12
12:03

ArcelorMittal implements longs mills shutdowns amid energy costs

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ArcelorMittal’s electric arc furnace-based mills in the European long products business are implementing selective hourly stoppages when energy costs are at their peak within the day, market sources tell Kallanish.

With spot electricity prices ranging between €170-300/MWh ($196-346), the additional cost impact for the EAF-based steelmaking process is calculated to currently be at €150-200/tonne.

The impact on ArcelorMittal’s customers of the selective stoppages has not yet been visible. However, market analysts believe the current high energy prices will continue at least until the end of the year, potentially impacting output further.

Last week, ArcelorMittal informed its clients of the application of a €50/t energy surcharge for all new sales and contracts for long products in Europe.

Italian and Spanish EAF-based steelmakers recently confirmed being in the process of implementing similar selective stoppages.

ArcelorMittal Longs Europe operates production units in a number of European countries, including Luxembourg, Germany, Spain, France, Poland, Bosnia and Romania.

Emanuele Norsa Italy