Outokumpu will delay the restart of one of its ferrochrome furnaces after a maintenance break due to the elevated electricity price – stainless steel deliveries to remain on a normal level
Due to exceptionally high energy prices and an unstable energy market, stainless steel producer Outokumpu has decided to delay the restart of one of its three ferrochrome furnaces after a planned maintenance break. The maintenance break starts on September 7 and a restart was initially planned for week 40. Ferrochrome production will continue at about 70 per cent of its full capacity.
“Energy prices have increased significantly, which has had a negative impact on our cost competitiveness compared to our non-European competitors. We hope that decisive actions are taken at both EU and national level to stabilize the energy market. We are keeping a close eye on the situation and hope that politicians will take an active role in normalizing the operating environment,” says Martti Sassi, President, business area Ferrochrome.
“We have already been optimizing our ferrochrome production by not producing ferrochrome at the highest hourly prices to avoid the worst peaks in prices, as communicated earlier*. The decision to delay the reopening of one of our furnaces is a continuation of the ferrochrome production optimization,” Sassi continues.
In Finland, the Olkiluoto 3 nuclear power plant plays an important role in stabilizing the electricity market, and it is vitally important to get it up and running during this year for a healthier energy market. On a European level, Outokumpu uses 4 TWh of electricity, which is close to the entire electricity consumption of Helsinki, the capital of Finland.
Stainless steel deliveries on a normal level in the third quarter
Despite the decrease in Outokumpu’s ferrochrome production, the company’s stainless steel production will remain on the same level as guided in our January–June interim report, and these measures will not impact our customer deliveries or financial outlook for the third quarter. We will comment on our outlook for the fourth quarter in connection with Q3 results on November 3.
Ferrochrome is an alloy between chromium and iron and is an essential raw material in the production of stainless steel. Ferrochrome production uses more than 50 per cent of Outokumpu’s total electricity consumption in Finland.
*) Pia Aaltonen-Forsell, blog 31.8.2022: Energy crisis in Europe – how the rising electricity price impacts Outokumpu, https://www.outokumpu.com/news/2022/blog-energy-crisis-in-europe---how-the-rising-electricity-price-impacts-outokumpu
Outokumpu is the global leader in stainless steel. The foundation of our business is our ability to tailor stainless steel into any form and for almost any purpose. Stainless steel is sustainable, durable and designed to last forever. Our customers use it to create civilization’s basic structures and its most famous landmarks as well as products for households and various industries. Outokumpu employs some 9,000 professionals in more than 30 countries, with headquarters in Helsinki, Finland and shares listed in Nasdaq Helsinki. www.outokumpu.com