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ArcelorMittal (NYSE:MT) said Thursday it will temporarily shut down one of two blast furnaces at its Fos-sur-Mer plant in the south of France due to high energy prices and weaker demand for steel.
Europe’s biggest steelmaker said it will shut the blast furnace from December, and will adjust working hours for some of the plant’s employees up to a maximum of one day per week.
The company said orders for the plant are down for the end of 2022 and beginning of 2023 in “a strongly deteriorated macroeconomic context.”
Europe’s steelmakers have been hit hard by the energy crisis, which is pushing up costs while also lowering demand from key consumers such as manufacturers; at the same time, steel prices are plunging, forcing blast furnaces offline.
The latest shutdown is in addition to the 20% of European capacity ArcelorMittal (MT) has cut this year.
ArcelorMittal (MT) likely will feel pressure on its margins and volumes, which will interrupt its recovery cycle over several quarters, Oakoff Investments writes in an analysis newly published on Seeking Alpha.
