ArcelorMittal reduced steel output by 13% in the first half of the year

ArcelorMittal is the world’s leading steel and mining company with a presence in 60 countries and operations in 18 countries. In January-June 2022 it reduced steel output by 12.7% compared to the same period last year – to 30.9 million tons. This is stated in the financial report, published on the company’s website.

Steel shipments for six months amounted to 14.4 million tons. This is 8.9% less than January-June 2021.

Iron ore production in the first half of the year decreased by 2% compared to January-June 2021, to 24 million tons.

In the second quarter, ArcelorMittal reduced steel output by 10.4% compared to the first quarter, to 14.6 million tons. Compared to the second quarter of 2021, production fell by 18%.

Ore production for the three months amounted to 12 million tons, which is equal to the first quarter, and 7.1% more than the second quarter of 2021.

“We completed a number of targeted acquisitions in the first half of the year reflecting changes in the energy and metal resources needed to produce low-carbon steel, as well as a desire to strengthen our presence in regions with the ability to produce low-cost green hydrogen. Among them is Brazil, where we announced our intention to acquire one of the cheapest slab producers in the country,” said Aditya Mittal, CEO of ArcelorMittal.

In 2021 ArcelorMittal cut steel production by 3.3% compared to 2020, to 69.1 million tons. Shipment of steel products over the year decreased by 9%, to 62.9 million tons. Iron ore production decreased by 7.4%, to 26.2 million tons and the shipment of raw materials – by 8%, up to 26 million tons.

It should be noted that PJSC “ArcelorMittal Kryvyi Rih” has decided to suspend the operation of the mining and processing plant for the next three months starting from August 2022.

According to the company, the temporary shutdown of the mining and processing complex is caused by reduced activity in Europe amid the risk of recession, as well as by significantly increased costs of iron ore transportation. The company is having problems with shipment of its products for export. The port blockade has led the company to completely switch to rail transportation of steel products to the consumers. At the same time delivery costs increased by five times.