Megasa Zaragoza returns to full capacity

Portuguese steelmaker Megasa's electric arc furnace (EAF)-based mill in Zaragoza, northern Spain, is expected to return to full capacity in the near future after a 15-month strike ended on 12 April.

Megasa Zaragoza produces rebar, merchant bars and sections and has a production capacity of around 60,000-80,000 t/month of crude steel. The mill was running at no higher than 60pc capacity since the strike started in January 2018.

The mill's scrap consumption is expected to increase to 100,000 t/month in May from around 60,000 t/month in April. It sources most of its ferrous scrap requirement from the Spanish domestic market.

Market participants expect this increase in demand to provide additional support to scrap prices for May delivery in Spain, particularly for E1 and E3 old scrap.

April domestic delivered to mill prices for E1 and E3 old scrap in Spain for April delivery both fell by €10/t to €243-253/t and €258-268/t, respectively.

The Zaragoza plant was bought from ArcelorMittal in 2016. Megasa also owns a 1mn t/yr EAF-based mill in Naron, northwestern Spain.