Steelmaker ArcelorMittal is sidelining output increases at some of its mills in Brazil, as expectations for the nation’s domestic steel industry remain bearish.
While releasing its Q4 results, the steelmaker said increase in HDG production as well as in cold rolling and meltshop capacity in Brazil are currently “on hold”, as it “does not expect to increase shipments until domestic demand improves.”
ArcelorMittal is postponing a 0.6 million mt/year increase in HDG capacity as well as a 0.7 million mt/year rise in cold rolling capacity at its Vega do Sul mill in the city of Sao Francisco do Sul, in the state of Santa Catarina.
At its Juiz de Fora mill, in the city of same name in the state of Minas Gerais, the steelmaker is holding a 0.2 million mt/year increase in the capacity of its meltshop.
At the Monlevade mill, in the city of Joao Monlevade, also in the state of Minas Gerais, an expected increase of 1.2 million mt/year in liquid steel capacity, as well as a 2.3 million mt/year rise in sinter feed capacity will also have to wait until demand improves.
In Monlevade, Arcelor completed in Q4 a 1.1 million mt/year capacity increase for finished products in a project aimed to expand wire rod production.
The only project in the Brazil segment to not be postponed was the company’s new rolling mill project at its Acindar mill in Argentina. Arcelor should increase rolling capacity by 0.4 million mt/year for bars for the civil construction segment this year in the neighboring country.