Global steel makers cut production, conserve cash

Sees severe lockdown impact

For the global steel sector, the corona outbreak came at a time when the industry in 2019 underwent one of the hardest periods due to factors ranging from prolonged economic downturn caused by trade disputes and slow growth in emerging markets to surged iron ore price on the dam collapse in Brazil.

The global escalation of Covid-19 and the measures introduced by governments worldwide to contain the virus are negatively impacting economic activity and industrial supply chains in many parts of the world, global steel major ArcelorMittal has said.

“Consequently, we are either seeing or expect to see a significant decline in industrial activity in many if not all of the geographic markets in which we operate, which is impacting our business,” the Lakshmi Mittal-owned group said.

Where possible, ArcelorMittal employees are working remotely from home and where assets continue to operate, the group is following the recommendations from government as well as the World Health Organisation.

In response ArcelorMittal is reducing production and temporary idling steelmaking and finishing assets, adapted on a country by country basis in alignment with regional demand as well as government requirements.

“This will not necessarily happen uniformly at assets across the globe given the escalation of the virus is at different points in different regions,” it said.

While Europe is currently the epicenter, according to official WHO data cases in the NAFTA region have now exceeded those in China, with cases also increasing in Africa, India, South America and the CIS.