An unprecedented crisis in the steel industry

ArcelorMittal, one of the largest steel producers in the world, owns one of the steel mills in Spain. Unofficial information in the media indicates that the group may, due to high costs, stop producing steel there; instead, he would manufacture it in Brazil and ship it to Spain from there. It's cheaper than shipping iron ore and making steel in Europe. The question arises: can a similar scenario happen in the case of Poland and Ukraine?

The main reason for the ongoing crisis in the steel industry remains a difficult situation, especially in the automotive and engineering industries. The situation is somewhat better in the construction sector.

The crisis caused by the coronavirus pandemic echoes the traditional problems of European industry - expensive electricity. And the European steel industry can forever lose its competitiveness, such a scenario, unfortunately, is possible. This also applies to Poland, - added Tomasz Schlezha, Member of the Board of Directors of ArcelorMittal Poland ..

He noted that there are currently no plans to launch a blast furnace at a steel mill in Krakow. Tomasz Šlenzak said that the technological minimum of the blast furnace is about 60 percent. his abilities.

The message from the European Commission, which aims to accelerate the green transformation, is understandable.

- New steel production technologies are not ready for implementation. The prospect of introducing future technologies in the steel industry is a decade, not a year or several. And regardless of the scale of public support, - says Tomasz Slenzak.

However, he admits that the green transformation could be a flywheel for European industries, including metallurgy. This could benefit, for example, from the development of electromobility and the high demand for electric vehicles.