AM Fos HSM down after incident

Luxembourg-based steelmaker ArcelorMittal's Fos-sur-Mer plant in France has halted its hot-strip mill (HSM) after an incident last week, according to market sources.

An engine broke down and the mill is expected to resume production today or tomorrow, the company said.

The accident comes as lead times at European producers have extended, with spot availability scarce until the year's end. Some buyers said the stoppage is exacerbating the supply shortage and causing further delays to orders, with some mills already working with 6-8 week delays.

Although ArcelorMittal has brought a number of blast furnaces back on line after shutting them during the peak of the Covid-19 pandemic in Europe, the ramp-up has yet to impact the market. Expectations are that the shortage will ease in the first quarter of 2021, although some market participants say this is likely to coincide with a further strengthening in automotive demand.

In northwest Europe, the majority of mills are booked for the rest of this year, with some even quoting lead times into February-March for certain grades. Buyers say not all capacity is full, and are waiting in the hope more competitively priced material becomes available. Automotive lines at several mills have been running at full tilt, as mills prioritise the auto supply chain, which has been restocking strongly in recent months.

By Lora Stoyanova