Concerns about the sale of Celsa's facilities in Europe!

European markets have been concerned after Spanish long steel producer Celsa allegedly sold its facilities in Norway, Poland and the United Kingdom.

Celsa, one of Europe's leading long steel producers, has significant production facilities in Spain and France and remains a major buyer of ferrous scrap in markets such as Spain and the UK.

According to sources, the company stated that no decision has yet been taken to sell or buy the assets, and that it is working with financial institution Citi to evaluate the assets.

Sources in the UK, however, said Celsa was looking to sell its UK unit, adding that it would lead to the adoption of electric arc furnaces.

The sale of the Celsa facilities, one of three companies producing rebar in Poland, is likely to have a serious impact on the country's steel market if it goes through, the sources noted.

After a difficult financial year, Celsa's sales are being described as a restructuring activity over alleged debt reduction.