Liberty Steel plant in Ostrava delays payments to energy supplier

The European steel market is “challenging,” a spokesman for Liberty Steel Group told Argus when asked if the Ostrava plant was behind on payments to suppliers.

Liberty said that despite the difficulties, it "worked proactively with suppliers and customers to ensure" that Ostrava's operations were not affected. According to market sources, Ostrava is behind on payments to its local energy supplier, Tameh Czech.

Patrik Schober, a media spokesman for Tameh Czech, said the companies were "talking" but did not comment on the situation.

A spokesman for Liberty said it does not comment on its dealings with individual suppliers. Sources suggest that Liberty is also behind on payments to raw material suppliers for its European plants.

The company recently extended its tolling agreement with Dunaferr in Hungary until the end of June. In Dunaferr, the state pays wages and guarantees the energy supply.

While coil prices have risen in recent months, they have fallen over the past few weeks and demand has been very low despite severe production disruptions and long delivery times from local suppliers.

Since April 4, the core Argus index for hot rolled coil in the northwestern part of the EU has fallen by 16.50 euros /ton (18.11 US dollars /ton), while the total daily Italian index has fallen by 33 euros /ton over the same period. ton, due in part to falling prices in Asia. and the stronger the euro against the dollar.

Service centers across Europe are struggling to pass on higher costs to their customers, which is increasingly limiting their ability to pay higher levels. Low import prices, with Argus cif Italy's hot-rolled steel valuation €134/t lower than domestic prices, are further dampening demand.