Arcelor reduces stainless production

Arcelor reduces stainless production

European steel maker Arcelor is planning to cut its steel production by 50'000-60'000 tons during the next three months. There is a rumour in the European steel market that the other stainless mills are going to reduce their production too. The company pointed out that the mills have to be adapted due to low demand in the market. On top of this, the stainless steel imports into Europe have been attracted by strong Euro. In additon, Arcelor is aiming to preserve its current price levels by reducing production. Arcelor's division Ugine & ALZ which is located in Luxembourg and have an annual capacity of 1.3 mt, is going to reduce production by 70% at its mills in Genk, Belgium; L'Ardoise and Isbergues, France next month. However, the August's figures have not been decided by the company yet. Similarly, Germany's Thyssen Krup Stainless also considers to reduce production at its Italian subsidiary AST. Finnish stainless steel maker Avesta Polarit and Spanish stainless steel maker Acerinox will also follow with production cuts.