Decreasing Activity Alert: Implications for Steel Buyers from ÓAM Ózdi Acélművek Kft

Introduction:

The ÓAM Ózdi Acélművek Kft, located in Borsod-Abaúj-Zemplén, Hungary, produces electric-arc-furnace steel with an annual capacity of 690,000 tonnes. This plant primarily supplies the semi-finished and finished rolled steel sectors.

Activity Change Overview:

Recent satellite data indicates a significant decrease in operational levels at the plant, specifically with the Electric Arc Furnace (EAF_1). Over the last six months, activity has consistently declined, illustrating a potential concern for supply stability moving forward.

From November 2024 to April 2025, the activity of the EAF_1 has dropped from 91.0% to 80.0%. This trend signals a cautious operational approach as the facility experiences a -5.67% change, categorizing it as an orange alert status.

Market Implications:

For steel buyers and analysts, the observed decline in activity at ÓAM Ózdi Acélművek Kft raises concerns about possible supply bottlenecks in the semi-finished and finished rolled steel segments. With production reductions also occurring at other facilities, like the recent Turkish Koc Metallurgy to suspend production at two plants, the market may face tighter availability of steel products, leading to potential price risks. Buyers should closely monitor these developments as they navigate procurement strategies amid fluctuating supply dynamics.