ArcelorMittal could boost Ukraine steel output if situation stabilises
By Anna Peverieri
Nov 7 (Reuters) -ArcelorMittal MT.AS, the world's second-largest steelmaker, could more than double annual production by at least 3 million metric tons in war-torn Ukraine if the situation stabilises there, the steelmaker's Chief Financial Officer Genuino Christino told investors during a quarterly conference call on Thursday.
Christino did not elaborate on what conditions the company would need to boost production.
The Luxembourg-based company operates a steel plant in the city of Kryvyi Rih that is operating at 40% of capacity. The plant currently produces 500,000 tons of steel on a quarterly basis.
Since Russia's full-scale invasion of Ukraine in 2022, the plant had been running only one of three blast furnaces. In April, the company restarted a second furnace, but will soon revert to running just one with energy in short supply and costly.
"The price of energy has been very high and therefore we are just optimising the flows of the production to save on energy costs", Christino said.
The plant sources some of its coal from a mine in the eastern-Ukrainian town of Pokrovsk, which is at risk of being seized by Russian soldiers.
ArcelorMittal reported third-quarter core profit that was 6% above market expectations.
Reporting by Anna Peverieri; Editing by Rod Nickel
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
