Following this decision, the company plans to start a new process under the temporary layoff of workers (ERTE) plan. The ERTE agreement was agreed in July following negotiations with the unions and is valid until 2027.
As of October 12, the hot rolling unit at the smelter in Cadiz, which has an annual production capacity of 1 million metric tons, will be suspended. The suspension of the cold rolling unit is also on the agenda, but this process is reportedly to be decided later. According to the company's second quarter data, the 17% decrease in global steel production played an important role in this decision. During this period, Acerinox's crude steel production decreased to 405,000 tons worldwide.
In addition to Spain, Acerinox has stainless steel production facilities in the US and South Africa. It also operates a smelter in Germany with a capacity of 3.5 million metric tons/year to produce high-performance alloys. Among the company's assets in Asia, its Malaysian subsidiary Bahru Stainless shut down production in May. This move signals a significant restructuring of Acerinox's global production strategy.
These developments also affect the current dynamics of global metal markets. On October 8, the Global Daily Molybdenum Oxide price increased slightly from $22.075/lb to $22.15/lb compared to the previous assessment.
This pause in Acerinox's production activity once again highlights the current situation in Spain's steel sector and the volatility of global metal markets. Low demand and weak market conditions are forcing companies to review their operations, and these decisions provide important clues for the future of the steel industry.
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