Liberty Galati, the local integrated steel mill operated by the global group Liberty, announced that it relaunched operations at its 5th furnace, which will become operational again after being closed down at the end of September.

Liberty Galati reopened its furnace in mid-March after a modernization process but closed it down on September 30 following a force majeure situation caused by the low level of the water on the Danube and the adverse weather on the Black Sea that prevented the shipping company from providing the necessary raw materials.

The company says the resumption of operations in November comes amid challenging market conditions for European steelmakers, to which Liberty is adapting by adjusting product mix and production schedules, cutting costs and working with the government to close the gap with energy prices registered in Europe.

"The restart of the furnace is good news for Galati, but our focus remains on operational costs to support the pace of production and to ensure that we offer our customers competitive, high-quality Romanian steel. Our focus on cost-competitive semi-finished products is already paying off, helping us increase mill utilization and improve cash flow, which will improve trade payments in the coming months. We continue to work with the government to find solutions to reduce the energy cost gap, which currently accounts for nearly 40% of the variable cost per tonne of steel produced, up from just 8% in 2019," the company says in a press release, quoted by Economica.net.

The prices of industrial production increased by 2% in September, compared to August – the steepest rise since October 2022, as the energy prices rose by 5.2% in just a month, the largest monthly leap since July last year.

Romanian large-sized industrial consumers pay an average price of EUR 192 per MWh of electricity, compared to an average of EUR 113 per MWh paid by their peers in European countries, according to a report by the Association of Large Energy Consumers in Romania (ABIEC).

iulian@romania-insider.com

(Photo source: Liberty Galati)