Steel giant ArcelorMittal is cutting production at some of its plants in Europe. According to the steel group, there will be “selective production breaks” because blast furnaces cannot operate profitably due to high energy prices.
This concerns special factories that produce long steel products. Belgian sites are not involved, according to Steel Group. ArcelorMittal has a blast furnace in Ghent, among other things.
ArcelorMittal said production restrictions would not have a “significant impact” on volumes or deliveries to customers. The company was already going to charge additional fees for a number of products, according to Bloomberg, but that doesn’t seem to be enough.
This measure is in response to high energy prices that make it difficult to produce steel profitably. Other companies such as Spanish steelmaker Sidenor Arceros and aluminum manufacturer Nyrstar have cut production for this reason.
Due to the high demand for gas and electricity since the economic recovery from the Corona crisis, the cold spring and the decline in energy generated from renewable sources, energy prices are rising and gas stocks in Europe are decreasing.
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