Ukraine's ArcelorMittal Kryvyi Rih is considering a shutdown of its facilities due to Russia's ongoing blockade of Ukrainian ports and the unfavourable situation in the global steel market. “The steel plant in Kryvyi Rih will have to be completely closed unless the blockade of Ukrainian Black Sea ports is lifted or global steel prices begin to rise,” the plant's CEO Mauro Longobardo stated.
Apart from challenging logistics, unprofitable export sales, stemming from the deterioration of the situation in the global steel market, have also forced the mill's management to consider a shutdown. Specifically, since the beginning of Russia's war on Ukraine, ArcelorMittal Kryvyi Rih has developed a new route for delivery of its products by land through European countries, causing an increase of $100-130/mt in additional transportation costs. “Now, the company operates only one blast furnace out of four, producing several thousand metric tons of products. The company’s products are shipped mainly to Ukrainian customers. There is no steel industry in Ukraine without seaports. We have done everything we could,” the CEO stated.