El Hadjar to show weaker output in 2019

Monday, 30 September 2019 11:30:05 (GMT+3)   |   Istanbul
       

Algeria’s El Hadjar steel complex, one of the largest producers in the country, though one which has been experiencing difficulties, may register a certain decrease in output this year compared to the previous annual results. According to the local media, the company expects to produce 590,000 mt of finished steel this year, while in 2018 Al Hadjar manufactured 700,000 mt. One of the reasons is the poor demand in the country, which is hit by political turmoil. Another reason is the numerous production stoppages seen this year at El Hadjar.

The disruptions in iron ore supply were among the key reasons for El Hadjar to stop the crude steel production several times this year. However, according to a recent governmental inspection, the mill has been receiving 5,000 mt of ore daily with a peak of 8,500 mt for a single day versus daily consumption of 6,700 mt. “El Hadjar needs to have 30 days of iron ore reserves in order to sustain its activities and to avoid blast furnace stoppages,” a company representative said. Currently, the government is planning a series of measures to support El Hadjar in terms of supply chain management, sales sustainability and certain financial issues.


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