Slovenia’s largest integrated metallurgy group SIJ Group has announced that it has decided to adjust its production volumes due to high energy prices. Accordingly, the company will reduce its production by about a third this month, and expects around a 40 percent reduction in its production in the fourth quarter this year.
Operating in an energy-intensive industry, SIJ Group stated that it was impacted negatively by the high electricity and gas prices and is no longer able to manage these high levels through sales given the uncertainty regarding customers accepting current price conditions.
It is expected that the Slovenian government will introduce concrete measures to help companies and energy-intensive industries in the coming months and next year. The company believes that a cap on energy prices is the only measure that could adequately address the ongoing challenges and those that lie ahead in the coming months.
Meanwhile, some other EU producers have also announced production halts or reduced working hours as a result of higher production costs amid increased energy prices, and market sources fear more reduction in steel production in the coming days, SteelOrbis understands.