ArcelorMittal will not allow Europe market share to dip

Global steel producer ArcelorMittal said today that it will not allow its European market share to fall despite its planned supply cuts in the region.

The company will temporarily reduce its European production by 3mn t/yr, with 1.5mn t/yr coming from its Krakow unit in Poland and the balance split between its Taranto plant in Italy and Asturias facility in Spain.

The key question is how Europe's weak economic environment will affect demand, ArcelorMittal said today. High imports have exacerbated the decline in demand on the continent, the company said, singling out the surge in Turkish arrivals.

Turkey represented over 50pc of the EU's hot-rolled coil (HRC) import market in January, following a surge in buying of its competitively priced material in the fourth quarter of last year. The EU imported a record 960,000t of HRC in January, with Turkey making up 497,000t. April is likely to be another very strong month for imports, based on the drawdown in the EU HRC quota.

ArcelorMittal said its output cuts are its contribution to ensuring Europe's supply and demand balance, but refused to comment on what its peers may do. There is an expectation in the market others will follow suit. The 3mn t/yr cut represents around 3pc of EU flat steel demand.