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| ArcelorMittal Blast Furnace |
Uncertain future for ArcelorMittal’s Asturias steel plants
ArcelorMittal has expressed serious doubts about its current industrial configuration in Spain, particularly in Asturias. The company faces significant challenges maintaining blast furnace operations in Gijón. Blast furnace A is nearing the end of its lifespan, requiring costly investments that are untenable under present market conditions. Meanwhile, blast furnace B will soon undergo maintenance, intensifying operational uncertainty.
Environmental regulations and rising costs threaten production sustainability
Furthermore, the mandatory closure of sintering plant A by December 31 will force ArcelorMittal to import pre-sintered ore. This measure, required by regional environmental authorities, will increase production costs and jeopardize the feasibility of running two blast furnaces simultaneously. As a result, the company questions its ability to sustain its existing industrial footprint in Spain.
Industry-wide challenges prompt calls for urgent policy reforms
In contrast to company-specific issues, ArcelorMittal joins other steel producers in criticizing the European Action Plan for Steel and Metals. The company demands immediate trade defense mechanisms and reforms to the Carbon Border Adjustment Mechanism (CBAM). Meanwhile, the postponement of new direct reduced iron (DRI) investments highlights broader political and energy challenges affecting Europe’s steel sector.
ScrapInsight Commentary
ArcelorMittal’s uncertainty about its Spanish industrial configuration reflects broader structural challenges facing the European steel industry. Environmental regulations and energy costs drive the need for costly operational changes. Policy reforms, especially on trade defense and CBAM, are critical to safeguarding Europe's steel production and preserving jobs.
