ArcelorMittal to temporarily reduce annualised European primary steelmaking production by three million tonnes
May 06 2019 - 2:55AM
ArcelorMittal to temporarily reduce annualised European primary
steelmaking production by three million tonnes
Regrettable decision necessary due to combination of weakening
demand, rising imports coupled with insufficient EU trade
protection, high energy costs and rising carbon costs
6 May 2019, 08:55 CET
ArcelorMittal today announces its intention to temporarily idle
production at its steelmaking facilities in Kraków, Poland and
reduce production in Asturias, Spain. In addition, the planned
increase of shipments at ArcelorMittal Italia to a six million
tonne annual run-rate will be slowed down following a decision to
optimise cost and quality over volume in this
environment.
Together, these actions will result in a temporary annualised
production reduction of around three million tonnes.
Commenting, Geert van Poelvoorde, CEO, ArcelorMittal
Europe – Flat Products, said:
“The difficult decision to temporarily reduce our European
primary flat steel production has not been taken lightly. We
understand the impact this has on employees and the local
communities and will be working to ensure social measures are in
place to support them during this period.
“These actions reflect the weak demand environment in Europe
today, a situation further compounded by increased imports despite
the safeguard measures introduced by the European
Commission. High energy costs and increasing carbon costs are
adding to the tough environment.
“We are engaging with stakeholders to request that the
safeguards are strengthened to prevent a further increase in
imports as a result of continued global overcapacity and a
weakening economy in neighbouring countries including Turkey. We
will also continue to make our case for a green border adjustment
to be introduced to ensure that imports into Europe face the same
carbon costs as producers in Europe. The steel industry in
Europe can have a strong future but there must be a level playing
field to ensure that an unfair advantage is not given to
competitors outside the region.”
In Kraków, the primary production (blast furnace and steel
plant) will be temporarily idled. The Polish steel market has been
particularly hard hit, due to a near fourfold year-on-year increase
in Russian steel imports in 2018, and among the highest electricity
prices in Europe.
In Asturias, primary production will be reduced. Electricity
costs are also very high in Spain, and the southern European market
has been hit by an unprecedented rise in imports from outside the
EU.
Despite the introduction of the permanent EU safeguard tariffs
in February 2019 there has been a continued and consistent rise in
flat steel imports into Europe. Flat steel imports into Europe are
currently at record highs, with imports of hot rolled coil up 37
per cent this year from 2017, on an annualised basis. In addition,
the price of carbon has risen by approximately 230 per cent since
the start of 2018, placing further competitive pressure on European
steelmakers. In the EU Emissions Trading System (ETS), only steel
produced in Europe is subject to a carbon levy. ArcelorMittal has
previously called for the introduction of a green border adjustment
whereby steel imported into Europe has the same standards applied
on CO2 as European produced steel under the ETS.
ENDSAbout
ArcelorMittal
ArcelorMittal is the world's leading steel and
mining company, with a presence in 60 countries and an industrial
footprint in 19 countries. Guided by a philosophy to produce safe,
sustainable steel, we are the leading supplier of quality steel in
the major global steel markets including automotive, construction,
household appliances and packaging, with world-class research and
development and outstanding distribution networks.
Through our core values of sustainability,
quality and leadership, we operate responsibly with respect to the
health, safety and wellbeing of our employees, contractors and the
communities in which we operate.
For us, steel is the fabric of life, as it is at
the heart of the modern world from railways to cars and washing
machines. We are actively researching and producing steel-based
technologies and solutions that make many of the products and
components people use in their everyday lives more energy
efficient.
We are one of the world’s five largest producers
of iron ore and metallurgical coal. With a geographically
diversified portfolio of iron ore and coal assets, we are
strategically positioned to serve our network of steel plants and
the external global market. While our steel operations are
important customers, our supply to the external market is
increasing as we grow.
In 2018, ArcelorMittal had revenues of $76.0
billion and crude steel production of 92.5 million metric tonnes,
while own iron ore production reached 58.5 million metric
tonnes.
ArcelorMittal is listed on the stock exchanges
of New York (MT), Amsterdam (MT), Paris (MT), Luxembourg (MT) and
on the Spanish stock exchanges of Barcelona, Bilbao, Madrid and
Valencia (MTS). For more information about ArcelorMittal please
visit:
http://corporate.arcelormittal.com/
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