German steelmaker Salzgitter has delayed the restart of 600,000t/yr blast furnace C until September, according to market sources.
The company idled the blast furnace in October 2019 and was initially meant to restart it around a similar time last year, but subsequently delayed the restart until the first quarter of this year, before pushing it further to May-June.
The producer decided to delay the restart again as it has sufficient slab from its two operational furnaces and a joint venture with fellow steelmaker HKM. The company did not return repeated requests for comment.
Salzgitter's unsurprising decision comes amid a crumbling spot market. The Argus benchmark northwest EU hot-rolled coil index was €898/t ($933) today, down a staggering €513.75/t since 24 March.
Weakening end-user demand and high stocks in the supply chain have contributed to the price erosion, alongside competitive import offers.
But one large European producer has secured a rollover for July-December contracts of around €1,000/t. Contractual rollovers, should they proliferate the market, could help stem the recent price erosion, sources suggest.
Supply-side cuts are the other primary lever to support prices, as mills come increasingly close to costs. Europe's largest steelmaker ArcelorMittal has idled its Eisenhuttenstadt furnace for over one month, although the company has suggested that this is for normal maintenance.
