ArcelorMittal, the global steel giant, has temporarily shut down its wire rod production at its Verinha, Gijon, facility in Spain, citing low steel demand and increased imports from non-EU countries as the primary reasons. The suspension, effective until January 7, 2025, was announced following a challenging period in the steel market, with a noticeable downturn in orders and the influx of cheaper steel imports.
This is not the first time the plant has faced disruptions this year. In October, production was halted for 10 days due to similar reasons, and now, in coordination with the holiday period, the suspension is extended to reduce operational impacts.
Wire rod, a key rolled product in steel production, has been particularly affected by the rising volume of imports from countries outside the European Union, which has put pressure on local manufacturers. The production shutdown will directly impact over 180 employees, who are now being offered alternatives such as medical checks, holidays, or vocational training during the downtime.
The company had previously announced a series of production adjustments, including a reduction in operations at its Romanian plant, ArcelorMittal Hunedoara, due to a similar demand slump. Additionally, ArcelorMittal’s plans to build new Direct Reduced Iron plants, including the one in Gijon, were postponed as of November 26, 2024, due to adverse political, energy, and market conditions in Europe.
The steel industry’s struggles are compounded by broader economic challenges, including a slowdown in global demand and rising energy prices, leaving producers like ArcelorMittal grappling with tough decisions to sustain profitability and operations.
