CSN Temporarily Halts No. 2 Blast Furnace Amid Market Adjustments

23 January, 2025 by
CSN Temporarily Halts No. 2 Blast Furnace Amid Market Adjustments
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Companhia Siderúrgica Nacional (CSN), one of Brazil's foremost steel producers, has announced the temporary shutdown of its No. 2 blast furnace located at the Presidente Vargas mill in Volta Redonda, Rio de Janeiro. The furnace, which boasts an annual crude steel production capacity of 1.5 million metric tons, has been idled to align the company's output with the prevailing market demand.

CSN has not disclosed the anticipated duration of this shutdown. Despite this adjustment, the company continues to operate its other subsidiaries in Brazil, Germany, and Portugal without interruption. CSN has committed to keeping the public informed about any further developments concerning its operations.

This move mirrors similar actions taken by other steel manufacturers in the region. For instance, Gerdau and Usiminas have also idled blast furnaces in response to fluctuating market conditions. Analysts from BTG Pactual and Credit Suisse have indicated that such measures are prudent for optimizing operational efficiency during periods of reduced demand.

The temporary halt of the No. 2 blast furnace is expected to impact approximately 30% of CSN's total crude steel production capacity. The company has not announced any workforce reductions associated with this shutdown and is reportedly reassigning affected employees to other operational areas or maintenance projects within the facility.

CSN's decision underscores the dynamic nature of the global steel industry and the necessity for producers to adapt swiftly to market demands. The company remains vigilant in monitoring market conditions and is prepared to adjust its operations accordingly to maintain stability and meet customer needs.

Vietnam Steel by Hoa Sen Group

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