HBIS to shut down blast furnace in Smederevo due to low demand

HBIS Group Serbia Iron & Steel will shut down Blast Furnace #1 at its Smederevo plant due to low global demand for steel products, Callanish said.

“Preparations for the closure of Blast Furnace #1 at HBIS Serbia are ongoing,” the spokesman said. “The reason for this is the global market situation, which has led to a decrease in demand for steel. We have adjusted our business to the current situation and as soon as market conditions improve, the blast furnace will be up and running again.”

The plant in Smederevo can produce about 2.2 million tons of steel per year with two furnaces, while Plant No. 1 has a capacity of about 900,000 tons per year.

The product range includes hot rolled and cold rolled coil, pickled coil and electrolytic tinplate.

In 2021, HBIS Group Serbia increased the capacity of Blast Furnace #1 at its plant in Smederevo after restarting the unit on 2 August. This blast furnace was shut down in July 2020 due to the Covid-19 pandemic and the prevailing market situation.

Southeast Europe (SEE) crude steel production increased to 451,494 tonnes in May, up 11.2% year-on-year, according to Worldsteel data. Thus, in the first five months of the year, regional production increased by 14.6% compared to the same period last year to 1.7 million tons.

Serbia is once again the largest steel producer among the seven SEE countries, which also include Bulgaria, Croatia, Slovenia, Bosnia, North Macedonia and Moldova.

Steel production in Serbia in January-May amounted to 769.4 thousand tons, an increase of 10.5%. In May alone, the country produced 166,700 tons, up from 122,800 tons in May 2021.