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Problems of the steel industry in Poland. “It couldn't be worse”

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Miroslav Mutica from HIPH believes that the crisis is deeper and more dangerous than it was at the beginning of the period 2008-2009. We can also readProduction in Poland fell by 15% last year. This is a much higher rate than in the European Union, where the decline reaches 8%. As it turned out, according to preliminary data for 2023, steel mills produced 5.9 million tons of steel, while in 2017-2018 it was more than 10 million tons. Per year – we read in “Puls Biznesu”.

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See also: Chaos around the atom. Expert: They want Poland to falter

The industry turned to the Prime Minister for support

Last year's result was the worst since Poland joined the EU, notes HIPH's Motyka. However, Stefan Dziniak, Chairman of the HIPH Council, and Henryk Orczykowski, President of Stalprofil, emphasize that ““The current level of steel production in Poland is similar to the level recorded in the 1950s.”that is, the time when the Polish economy was being rebuilt after the war.

According to PB, HIPH and the trade unions of ArcelorMittal Poland asked Prime Minister Donald Tusk for support and to form a team to diagnose the industry’s problems and find a solution to them. However, the government expects that the situation may improve. All because of the upcoming investments.

As Przemysław Koperski, Deputy Minister of Infrastructure, noted, “Infrastructure projects in the railways, roads, energy and marine industries should stimulate steel production.” However, experts point out that “it can't get any worse,” which is why they expect improvement in the second half of the year.

What other issue are industry representatives concerned about? The share of domestic steel in Poland also declined. As it turns out, most of the products go abroad, and products are imported into Poland from the European Union and, among others, Ukraine. This is caused by high domestic steel prices. It sometimes happens that Polish businessmen purchase steel from abroad in order to remain competitive in tenders.

Prices are affected by, among other things: rising costs of energy produced mainly from coal. Experts confirm that “Without decarbonisation of the energy industry, there will be no opportunity to produce green steel and thus compete with foreign companies“.

HIPH Council Chairman Stefan Dziniak stresses in an interview with Puls Biznesu that it is necessary to support local producers. Thanks to this, they can work efficiently. As an example, he gives the Korean company Yulchon, which announced a plan to start production of metal pipes near Legnica, while AM ​​Tubular Products in Krakow is closing.

Why there is no demand for products from Krakow, but there will be demand for products from Legnica – concludes Stefan Dziniak.

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Echo Richards
Echo Richards
Echo Richards embodies a personality that is a delightful contradiction: a humble musicaholic who never brags about her expansive knowledge of both classic and contemporary tunes. Infuriatingly modest, one would never know from a mere conversation how deeply entrenched she is in the world of music. This passion seamlessly translates into her problem-solving skills, with Echo often drawing inspiration from melodies and rhythms. A voracious reader, she dives deep into literature, using stories to influence her own hardcore writing. Her spirited advocacy for alcohol isn't about mere indulgence, but about celebrating life's poignant moments.

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