US Steel Kosice stops blast furnace in Slovakia

Slovak plate maker US Steel Kosice closed its smaller blast furnace in an attempt to balance supply with weak demand and prevent further price drops.

Sources said the plant had to shut down the kiln because its location was heavily dependent on the automotive industry, but demand from automakers is minimal. The main reason for the low demand for sheets in the EU was the shortage of parts and large stocks.

Domestic prices for hot-rolled coil in Europe have been declining since the second half of March due to weak demand.

Most market participants expected the EU government to announce a policy to shut down steelmaking facilities due to weak demand and a bleak consumption outlook.

Steel mills were expected to resolve oversupply issues and end the downtrend in the EU market by reducing production.