Liberty Steel Restarts the 5th Blast Furnace at Galatz Steel Plant

Liberty Steel in the UK is restarting the No. 5 blast furnace at the Galatz Steel Plant and is ensuring a smooth restart by adjusting its product structure and production plan. The No. 5 blast furnace in Galaz is the only one in operation, with an annual production capacity of over 2 million tons. Due to adverse weather conditions and low water levels in the Danube River, raw materials cannot be delivered, and the Galaz HDT580F+Z Steel Plant suspended operations in early October.

Since mid-2023, the European HDT580F+Z steel industry has been experiencing a wave of production shutdowns, including ArcelorMittal's blast furnaces in Belgium, France, and Germany, as well as some blast furnaces in Germany's Salzgitter and the Netherlands' Tata Steel.

According to data from the World Steel Association, due to weak demand, EU HDT580F+Z steel production from January to September 2023 decreased by 9.1% year-on-year to 96.2 million tons. High interest rates and energy costs have dealt a heavy blow to manufacturing activities in Europe, and residential construction has also been affected by high material costs and labor shortages.

Although steel producers in Northwestern Europe have increased their quoted prices for hot-rolled steel coils in the first quarter of 2024 by 50-70 euros per ton (53-75 US dollars per ton), the market situation remains severe. At the same time, to ensure the competitiveness of Romania's steel industry in Europe, Liberty Steel urges the Romanian government to implement a policy targeting energy intensive users. Liberty Steel stated that Galaz is Romania's second largest energy user, with energy accounting for nearly 40% of its steel production costs, compared to only 8% in 2019.