The collapse in Polish steel industry, which is the consequence of many years of problems, has been a challenge for national manufacture for a long time. This situation is peculiarly pressing in the context of the execution of contracts by the Polish arms industry. In fresh weeks there have been speculations whether in the absence of orders for Polish steel, producers will be forced to import natural material from abroad.
Huta Liberty Częstochowa is 1 of the examples of steel plants in Poland affected by the crisis. Last week president Częstochowa made a dramatic appeal to the government, calling for support for local metallurgists. This plant, employing thousands of people, is simply a key maker of thick sheet metallic in Poland, essential for dense industry, among others. The stopping of production by Huta Liberty is 1 of the many phenomena observed on the home steel market.
The European Steel Association (Eurofer) reports a deep recession in the steel sector that affects not only Poland but Europe as a whole. The decline in steel consumption of 5.3% in 2023 is only the tip of the iceberg. The steel manufacture in Poland recorded an even larger drop in production, as much as 15% compared to the erstwhile year, which represents almost twice the EU average.
Government efforts to support the steel manufacture seem insufficient in the face of global challenges, specified as aggressive market-based steelworks from 3rd countries or advanced energy costs. This situation, deepened by the pandemic and the war in Ukraine, forces producers to search alternate sources of natural material, which in turn raises the question of imports of steel from abroad.
Recent reports indicate an expanding share of imported steel on the Polish market, while decreasing home production. In the first 4th of 2023, more than 1 3rd of Ukrainian steel came to Poland, which shows the increasing function of imports in shaping the home steel market. In addition, the fact that competition from 3rd countries is not covered by ETS certificates poses additional challenges for national producers.
The crisis in the Polish steel manufacture is besides the consequence of the strong presence of abroad investors, who control about 90% of the steelworks operating in Poland. This dominance, despite attempts to support local producers, makes the steel manufacture in Poland susceptible to global trends and marketplace fluctuations.
The prospects for the arms industry, which was to be 1 of the drivers of economical growth, seem little and little certain in the face of difficulties in the steel sector. The question of importing steel from abroad is becoming more and more relevant, stressing the request for action at both national and global level to support and guarantee stableness and competitiveness in the global market.
Ignacy Michałowski
OSINT investigator with experience in global journalism projects. It has been publishing materials for over 20 years for the largest releases. In social activities he engaged in various projects and initiatives aimed at improving the quality of life of people, especially those of mediocre communities. He was besides active in the fight for human rights. Contact: [email protected]
