Stomana Industry Pernik Steel Plant Faces Declining Activity Trends Amidst Market Challenges

Introduction

The Stomana Industry Pernik steel plant, situated in Pernik, Bulgaria, has experienced a notable decline in operational activity, prompting market scrutiny. Operating under Stomana Industry, the plant has an annual production capacity of 1,200,000 tons, primarily manufacturing semi-finished and finished rolled steel products that serve various end-user sectors.

Activity Change Over Time

Recent satellite observations reveal a downward trend in thermal activity within the plant’s Electric Arc Furnaces (EAF). The data highlights a consistent decline in activity levels over the past months, indicating potential challenges for supply chain dynamics:

The activity at Electric Arc Furnace (EAF_0) has diminished from 62.0% in October 2024 to 55.0% in April 2025, while Electric Arc Furnace (EAF_1) has similarly decreased from 39.0% to 32.0% during this timeframe. The overall decline of -6.92% in thermal activity has raised concerns about the plant’s operational stability.

Implications for Steel Buyers and Market Analysts

The decline in activity at Stomana Industry Pernik raises important considerations for steel buyers and market analysts. With similar challenges faced by other European producers, as highlighted in Germany reduced steel production by 11.3% y/y in March and WV Stahl struggles to foresee German production stabilisation, there may be heightened competition for available steel supplies. As production levels decline, buyers should prepare for potential supply constraints, which could impact pricing and availability in the market. The observed trends may signify operational inefficiencies that could lead to bottlenecks in the supply chain, posing risks for procurement strategies.