European hot metal production slipped in the week to 8 April, according to data from Tathya Earth.
Tathya's European hot metal production index fell to 89.02, from 90.22 in the previous week, and to its lowest level since the last week of January, when a number of furnaces were still idled in response to low apparent demand levels at the end of last year.
There was a very sharp fall in output at ArcelorMittal's Dunkirk site in France, where a fire took down the largest furnace at the site, number four, on 30 March. The furnace accounts for more than half the site's 7mn t/yr capacity. Tathya's subindex for Dunkirk fell to just 0.089, the lowest level since the fourth week of January and one of the lowest readings since it started tracking the data in January 2020.
Output at ArcelorMittal's Gijon site also remained very depressed, with the subindex dropping to 0, its lowest point since the company began tracking the data. A fire broke out at Gijon's blast furnace A on 22 March, with videos on social media showing multiple explosions at the unit.
Production at Tata Steel's Ijmuiden plant also remains low, probably driven by reduced rolling capacity and its upcoming furnace reline.
Interestingly, hot metal production at Voestalpine's Linz site dropped to its lowest level since Tathya started tracking the data, despite no known incidents at the site. Voestalpine did not return a request for comment on whether it had lowered output.
The European hot-rolled coil market has been very quiet in recent weeks, after a bout of restocking earlier this year, with Easter holiday observance also curtailing liquidity. Some large north European buyers suggest they have had no offers in recent weeks, with mills concentrating on longer-term contracts and perhaps trying to heighten the perception of shortage after recent production incidents.
Low spot demand levels are to an extent balanced by the reduction in output, with ArcelorMittal having to import slabs from Brazil and elsewhere to sustain its rolling programmes of late.
