““ArcelorMittal Kryvyi Rih” announced the reduction of production due to the deterioration of the market situation.”, — write: www.epravda.com.ua
“ArcelorMittal Kryvyi Rih” announced the reduction of production due to the deterioration of the market situation.
About this informs the press service of the company.
It is noted that the plant faced a number of serious challenges, including the drop in world prices for iron ore raw materials, the stagnation of steel markets in Europe and the high cost of electricity in Ukraine.
CEO Mauro Longobardo said that despite significant achievements in the first half of 2024, including an increase in production to 50% of pre-war levels and the restoration of logistics routes through the sea corridor, the situation in foreign markets has deteriorated sharply.
Reduction of production volumes will not lead to layoffs. According to the manager, the staff will be involved in repair work, protection and arrangement of the territory.
The main reasons for this were the decrease in demand for iron ore from China, the stagnation of the steel market in Europe and the high cost of transporting products due to the war.
“Unfortunately, the prices of iron ore fell below the cost of its delivery to the sales markets, which made the export unprofitable,” the message states.
Also, problems are created by the increase in the price of electricity in Ukraine, which is imported in the amount of up to 80%. Because of this, the cost of energy for a metallurgical enterprise is twice as high as the costs of European competitors.
It is reported that frequent power outages further complicate production processes.
Despite all these factors, the plant is actively working on measures to minimize the negative financial effect. In the fourth quarter of 2024, the company plans to adjust the production level in accordance with the decrease in demand in the markets.
In October-December, the plant plans to work with only one blast furnace (DP-8), at the same time, 2-3 sintering machines will be in operation, depending on the need. The converter shop and continuous casting machine (CBM) will be shut down for 45 days for major repairs. At this time, all the cast iron will be poured on the pouring machines (PM) of the blast furnace shops.
In addition, the company plans to carry out a major overhaul of the 250-4 fine grade farm, and blooming will be mothballed until the market situation improves.
“We are ready to quickly increase production volumes if the price of electricity in Ukraine becomes competitive or demand on the European market increases,” Longobardo concluded.
These steps will help “ArcelorMittal Kryvyi Rih” stay afloat during a difficult economic situation and ensure stability in the future, the company is convinced.
We will remind:
ArcelorMittal Kryvyi Rih is added to the position of other energy-intensive enterprises of Ukraine, which previously expressed concern about the unreasonably inflated requirement of mandatory electricity import.