Media reports from France and Belgium indicate that the world's largest integrated metals and mining company ArcelorMittal is shutting down furnaces at a number of production facilities across Europe for at least six months following the sharp decrease in demand as well as the rising steel inventories in the market.
Accordingly, this move will affect output by up to 30 percent at the Dunkirk, Florange and Fos-sur-Mer plants in France, as well as at the Genk plant in Belgium.
In mid-October the company had already stated, "To support the strong destocking activities of our customers, we have initiated significant production cuts and by doing so we are adapting supply to demand. In line with this decision, we are cutting production by 25 percent in the Commonwealth of Independent States (CIS), and are reducing the production volume by 10 to 15 percent in Europe. These production cuts are temporary in our view until inventories have reached low levels." One of the main reasons behind this decision was given as the shutdown or rollback in production of many carmakers - one of the main customers of steelmakers.
As regards growth projects, ArcelorMittal stated in mid-October that the current market situation is prompting the company to check the order of priority to be assigned to their different growth projects and that they are currently reassessing priorities.