Algeria’s El Hadjar resumes steelmaking, production challenges remain

Tuesday, 12 November 2019 17:22:35 (GMT+3)   |   Istanbul
       

Algeria-based El Hadjar, which has been undergoing a renewed governmental support program, has recently resumed steelmaking. However, the asset remains troubled.

El Hadjar has restarted operations at blast furnace No. 2 after the 14 days of suspension, this time caused by low coke quality, as was officially stated. According to the company’s officials, the latest stoppage has cost DZD 31.5 billion ($262 million).

Despite the announced governmental support in various fields, market players believe that the company will require some structural changes as it seems to be not in a position to cope with the financial and the sales side. According to production reports, El Hadjar is able to produce 250,000 mt of rebar versus 400,000 mt per year as per the nominal capacity. Still, despite low production, the company’s stocks remain high, SteelOrbis understands. The same situation is seen in the cold rolled coil sector as only 32 percent of the 280,000 mt capacity is utilized. Its steelmaking at the same time is normally utilized at a maximum 63 percent, according to the local media. As a result, according to the sources, El Hadjar was forced to stop the crude steel production from time to time given the gap with the finished steel output, which is normally less, SteelOrbis understands.


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