Spanish stainless steel producer Acerinox S.A. has announced it has temporarily suspended production at its plant in Algeciras, as well as new order intakes, sales of stocks and raw material purchases in order to assess the situation after Russia's invasion of Ukraine sparked strong uncertainty and volatility in the market. The company noted that other stainless steel suppliers are doing the same.
Last week, Andrés Barceló, general director of the Spanish steelmakers association UNESID, as well as some local producers, told Reuters that Spanish steel mills halted production on the afternoon of March 8, and, since them, many have been producing at a reduced rate in an attempt to mitigate skyrocketing energy costs. For instance, ArcelorMittal has stopped operating during peak hours, or about one third of the time, in Olaberria, in the autonomous region of the Basque Country. The company has also extended the scheduled closure of its plant in Sestao, also in the Basque Country, by ten days until March 23, and plans to close its plant in Gijón, in Asturias, between March 24 and March 28. Other local steelmakers such as Celsa, Megasa and Siderúrgica Balboa have reportedly reduced their production activities. UNESID has asked the government to take steps to tackle the problem of surging energy prices.