Arcelormittal: Second-largest steelmaker in the world, ArcelorMittal shuts plant in Europe, Here’s why

The second-largest steel producer in the world, ArcelorMittal, is the most recent business name to announce the closure of a factory in Europe as a result of rising gas and energy prices.

Due to the outrageously high surge in energy prices, ArcelorMittal is shutting down one of the two existing blast furnaces at its steelworks plant in Bremen of Germany, starting by the end of September until any further updates.

According to ArcelorMittal, they are taking this action in Europe because it is unable to operate all of its factories profitably due to the high cost of energy.

The decision was made by the steel giant in parts due to weak market demand, a bleak economic outlook, and consistently high CO2 expenses in steel manufacturing.

According to the CEO of ArcelorMittal Germany, Reiner Blaschek, the high cost of gas and electricity is severely hampering competitiveness.

Increased coke prices to hurt steel makers: Fitch

  • Increased coke prices to hurt steel makers: Fitch

Increased coke prices to hurt steel makers: Fitch

Increase in raw material costs for Indian steel producers could shrink margins, if the cost rise is not passed on to consumers.

Additionally, starting in October, we will be further burdened by the German government’s proposed gas levy.

Blaschek urged elected officials to act quickly to bring energy prices under control right away.

Due to exorbitant energy costs, aluminum smelters in Europe have also started closing recently.

According to a poll conducted by the Association of German Chambers of Industry and Commerce, DIHK, at the end of July, one out of every six industrial enterprises in Germany feels compelled to cut production as a result of high energy prices.

According to a poll of 3,500 enterprises from all industries and areas in Germany, about a quarter of those compelled to scale back output had already done so by the end of July, and then another one-quarter are in the process of doing so.

According to the DIHK poll, 32% of businesses expect to restrict production or have already begun doing so, including stopping entire production lines. This has an especially negative impact on energy-intensive businesses and industries.

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