Significant Activity Decline at Shakhty Steel Plant Highlights Supply Vulnerability in Steel Market

Introduction

The Donelektrostal Shakhty steel plant, situated in Rostov, Russia, has an annual production capacity of 1,000 tons of crude steel and is known for its electric arc furnace (EAF) operations. While specific ownership remains undisclosed, the plant plays a crucial role in supplying steel to various key sectors.

Activity Observations Over Time

Recent satellite observations indicate a troubling decrease in operational activity at the plant, particularly regarding the Electric Arc Furnace (EAF_0). Below is a summary of the thermal activity changes over the past months:

The data reveals a continuous decline in the operational ratio of the EAF, with a notable drop from 18% in November 2024 to a stark zero output in May 2025. This trend indicates severe operational challenges that could impact supply stability.

Implications for Steel Buyers and Market Analysts

The declining activity at the Shakhty steel plant raises significant concerns for steel buyers and analysts regarding potential supply shortages. As highlighted by the WV Stahl struggles to foresee German production stabilisation, overall stability in the steel sector remains uncertain, further exacerbated by similar production declines observed at other facilities like the DMZ cut rolled steel production by 52% y/y in January-April.

With the Shakhty plant’s output nearing a complete halt, market observers must consider the ripple effects this may have on steel pricing and availability in the broader market. Buyers should prepare for potential bottlenecks in supply that could impact procurement and pricing strategies in the coming months.