ArcelorMittal to cut European steel output

Luxembourg-based steel producer ArcelorMittal will temporarily reduce its European steel output by 3mn t/yr because of weak demand.

The company will temporarily shut production at its steel mill in Poland's Krakow and reduce production at its plant in Spain's Asturias. A planned increase of shipments at ArcelorMittal Italy to a 6mn t/yr run rate will be slowed down.

Increased imports of steel into Europe despite safeguard measures adopted by the EU, high energy and carbon costs are affecting the business environment for steel producers, Arcelor said.

ArcelorMittal will push for further strengthening of safeguards to prevent an increase in imports amid weakening demand in EU neighbours such as Turkey. It is also eager for imports into Europe to face the same carbon costs as European producers.

"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," said ArcelorMittal. Flat steel imports into Europe are currently at record highs, with imports of hot-rolled coil up by 37pc from 2017 on an annualised basis.

Only steel produced in Europe is subject to a carbon levy under the EU's Emissions Trading System. The price of carbon has increased by around 230pc since the start of 2018, ArcelorMittal said.