Why ArcelorMittal limits steel production in Krakow

The plant in Krakow produced about 1.7 million tons of steel per year. This is roughly half of the cut made by ArcelorMittal.

Why was a Polish metallurgical plant chosen for this task, although there is a Spanish one in Asturias nearby? ArcelorMittal will shutdown the blast furnace and will not melt steel in Krakow because it is expensive.

The costs of the Polish steel mill were mainly influenced by CO2 prices and higher, higher prices than in Germany, at PLN 100 per MWh. Global factors have led to this. Increase in iron ore prices from USD 60 to over USD 90 per tonne and increase in coke prices.

It is hoped that the temporary shutdown of steel production in Krakow will only last a few blocks. The stove is located there after repairs for 175 million zlotys, and, as they say, in the language of accountants, it has not yet paid off and has not returned the investment.

In general, hard times await the metallurgical industry. There is no indication that the factors that negatively affect it will stop working. There is no sign of a sudden cut in CO2 rights and energy costs are set to rise. In addition, there is a problem with the protection of the European Union from steel, which, after the reduction of the US market in tariffs, is sent to the Old Continent (more than 3 million tons). According to industry representatives, the so-called guards are full of holes.