ArcelorMittal Kryvyi Rih, the Ukrainian subsidiary of Luxembourg-headquartered ArcelorMittal, has announced the suspension of several mining and steel production facilities, citing disruptions in logistics services provided by Ukrainian railway operator JSC Ukrzaliznytsia. The company said insufficient deliveries over the past month have reduced raw material stocks to critically low levels, making it impossible to maintain uninterrupted operations at several key units.
The issue has already affected both steelmaking and mining operations, with the company warning that further production cuts may become unavoidable unless railway logistics are stabilized shortly.
Disruptions affect both steelmaking and mining operations
According to ArcelorMittal Kryvyi Rih, the most immediate problem is the unstable supply of fluxes, which are essential for iron production. As deliveries have not been sufficient to support continuous operations, the company has stopped one of its two blast furnaces, two sintering machines and one ore enrichment plant until supplies are restored and minimum stocks are rebuilt.
The logistics disruption has also affected the company’s mining segment, as the lack of trains for shipping iron ore concentrate has led to the suspension of ore extraction. This means the problem is not limited to inbound raw material deliveries, but also extends to outbound shipments of the company’s own products.
Second blast furnace may be stopped
The company warned that, if the situation does not improve within the next few days, it may be forced to stop its second blast furnace, additional sintering machines and another ore processing plant. Such a step would have a more serious impact on production performance and could deepen the operational disruption across the company’s value chain.
Mauro Longobardo, CEO of ArcelorMittal Kryvyi Rih, said the company has been operating at a loss for the fourth year and is already facing critically high electricity tariffs, the introduction of Carbon Border Adjustment Mechanism and aggressive imports in the market. Against this background, he said another raw material supply problem could be fatal for the company.
Company urges Ukrzaliznytsia to stabilize logistics
ArcelorMittal Kryvyi Rih stated that the disruption is not the result of objective circumstances, but of improper planning and distribution of transportation by Ukrzaliznytsia. The company said stable supplies for one of Ukraine’s largest industrial enterprises should be ensured, particularly given the scale of the potential impact on production, financial indicators and budget revenues.
The steelmaker also criticized Ukrzaliznytsia’s focus on tariff increases, arguing that the priority should be the quality, timeliness and reliability of transportation services. It called for urgent action to restore predictability in logistics processes and prevent wider consequences for Ukraine’s mining and metallurgical industry.
ArcelorMittal Kryvyi Rih added that it continues to operate under wartime conditions, including attacks on its plant and logistics infrastructure, and expects the same commitment to continuity from its service providers.