Huta Czestochowa restart to boost Polish plate supply

Polish plate buyers have welcomed news that the country’s Huta Czestochowa plant will resume production on January 20.

The long-term future of the steelworks remains unclear, however.   

Huta Czestochowa – with an annual capacity of one million tonnes – stopped its operations in October 2023 and its former owner, Liberty Steel, filed for bankruptcy in July last year. 

Poland’s state-owned coking coal exporter Weglokoks recently announced that it had reached an agreement to lease the site for a four-month period with the possibility of an extension.  

MEPS research partners say that maintenance work on the facility’s electric arc furnace and rolling mill, to prepare the plant for the restart, have been successful. 

The first batches of steel produced were sent for quality testing in early January and production is now expected to resume on January 20. 

MEPS research for January’s edition of the International Steel Review indicates that Weglokoks is yet to issue any firm price or delivery quotations to domestic customers, however.  

Rise in domestic plate supply 

MEPS market analyst Chris Jackson said that the Polish plate market had been “dominated by suppliers from other European countries in recent years”.   

Imports of hot rolled plate into Poland increased by 10.7% year-on-year in the 10-months to the end of October 2024. The main sources of plate imports were Czechia (26%), Italy (18%), Denmark (9%) and Finland (8%). 

In addition to the offering of domestic suppliers HSJ Cognor and Walcownia Blach Batory, the return of production at Huta Czestochowa will mean that Polish plate buyers have the option of procuring “significant volumes” domestically, Jackson said.  

Despite Huta Czestochowa’s return to the market, the search for a new owner for the site, in the longer term, is ongoing.  

MEPS understands that Weglokoks has first refusal on purchasing the site. However, interested parties that applied for the lease of the steelworks – such as Metinvest – will also take part in a tendering process to secure the long-term lease. 

Huta Czestochowa’s strategic importance 

The initial lease of Huta Czestochowa to a state-owned entity, Weglokoks, is an acknowledgement of the site’s strategic importance. The steelworks has the capability to produce heavy plates for defence-related applications, as well as for mechanical engineering and renewable energies. 

Some MEPS contacts say that Ukraine-based Metinvest would be a logical choice of operator for Huta Czestochowa. The business, which also has operations in Italy and the United Kingdom, has considerable experience in the production of plate. 

MEPS analysts forecast that Central European plate prices will increase in the early part of 2025. Mills need to improve on their current narrow profit margins and their price ambitions should be supported by a modest upturn in demand. 

However, Polish respondents expect that plate from Huta Czestochowa will initially be offered at low prices as part of efforts to regain market share. Furthermore, the return of material from the site has the potential to create oversupply, which may undermine hopes of a price recovery in the region.  

• MEPS’s monthly International Steel Review provides steel prices, price indices, market commentaries and six-month price forecasts from the United States, Canada, China, Japan, South Korea and Taiwan, as well as seven European steelmaking states. Contact MEPS for subscription details.