The decision of Russian gas-export monopoly Gazprom to halt gas shipments through pipelines passing via Ukraine to Europe, has started to affect major consumers in Central and Eastern Europe, including steel producers which have consequently been forced to adjust their outputs.
Eastern Slovakia-based U.S. Steel Košice, a subsidiary of integrated steel producer U.S. Steel Corp., has decided to adjust its production in line with the restrictions imposed by the Slovakian government. However, the company has not disclosed any details concerning its production cut. Other major Slovakian companies have also reduced their outputs.
In Bulgaria, being dependent on Russian gas supplies, most steel mills, including Stomana, Promet and Kremikovtzi, will be forced to halt production within a couple of days. According to KNSB trade union representative, Vassil Yanachkov, about 80 percent of production facilities at factories are working below their minimum capacities.
Meanwhile, ArcelorMittal, the world's largest steelmaker, has temporarily suspended its production activities in Bosnia at its Zenica plant, also due to serious shortage of gas supply. On the other hand, the company's coke plant in Bosnia will continue to operate at a higher level, in order to output more coke to compensate for the natural gas shortage.
In Romania, the government has decided to delay until next week the recommissioning of some production facilities, including Mechel Targoviste, a subsidiary of the Russian mining and steel producing group Mechel. Mechel Targoviste stopped its operations in November, and was planning to restart production on January 6. On the other hand, ArcelorMittal Galati, which has also experienced a drop in imported gas deliveries, said it is implementing all technical measures to ensure that its equipment and production operations will not be affected.