Liberty Steel is contemplating to surcease its one of the three ovens of its Czechian site at Ostrava and as per the speculations, the two of its blast furnaces are to undergo further halt in Europe in the months to come. However, a Liberty spokesperson has refrained from commenting on the "rumours" circulating about the possible idling of blast furnaces in Ostrava and Galati, Romania, due to strained working capital. While both furnaces are currently operational, sources indicate that senior leadership is contemplating their suspension.
The company's decision to shutter the largest coke oven, number 11, at Ostrava is rooted in its inefficiency and dwindling profitability attributed to market oversupply, shared a spokesperson from the group. The challenges posed by soaring energy prices and surging inflation in Europe have left the government's efforts to mitigate their impact on Liberty's businesses largely ineffective. As a result, the company is taking decisive measures in the best interests of its operations.
Recent months have seen Ostrava fall behind on payments to certain suppliers. In April, when questioned about its outstanding dues to local power supplier Tameh Czech, Liberty acknowledged the challenging market conditions. Reflecting this, Argus' benchmark north European HRC index declined from €849.75/t in early April to €826.50/t by month-end, and it currently stands significantly lower at €638.50/t.
Liberty's strategic moves extend beyond Ostrava. The closure of coke ovens at its Whyalla plant in Australia is underway, with plans to import coke for furnace feed. This aligns with the company's vision to operationalize an electric-arc furnace by 2025. Additionally, Liberty is importing billet from the Middle East to support its Australian rolling lines.
Recently, the lone operational blast furnace at the Dunaferr site was idled by Liberty, with the rolling mills being supplied with slab from Galati. Raw material suppliers linked to Ostrava have also forecasted the potential idling of the blast furnace by year-end.
According to Procurement Resource, Liberty Steel might halt operations at its Ostrava site in the Czech Republic, while speculation surrounds the potential suspension of two blast furnaces in Europe. A Liberty spokesperson refrained from commenting on the circulating "rumours" of blast furnace idling in Ostrava and Galati, Romania, due to financial constraints. While operational, sources indicate senior leadership is contemplating suspension. The closure of Ostrava's largest coke oven, number 11, stems from inefficiency and market oversupply. Liberty is taking measures to address challenges posed by energy price surges and European inflation.
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