ArcelorMittal Brazil announced that it has decreased its long steel output and is operating the business at 80pc of its capacity due to the effects of the COVID-19 pandemic.
The pandemic has created uncertainty in the Brazilian economy and steel industry, Paula Harraca, Director of Personnel, Communication, Social Investment and Innovation at ArcelorMittal long steel business in Latin America told the local media.
The company plans to continue investing in its Monlevade facility, Harraca said without disclosing further details.
On May 15, the steelmaker reduced pays and shifts of 163 workers at its Monlevade mill in the South American country to protect its employees from the COVID-19 pandemic. The Monlevade mill in João Monlevade, Minas Gerais, produced 1.1mn mt of long steel products in 2018 including wire rod, according to figures from the company’s annual report.
ArcelorMittal Brazil had not responded to Davis Index’s queries about the announcement at the time of publication.
Brazil’s steelmakers increased prices in July this year, mainly for long and flat steel products, and, according to media reports, ArcelorMittal Brazil may have increased its steel prices by 8pc for coated steel products and 10pc in other products beginning July 3.
In January this year, Brazilian steelmakers increased their prices due to a weak local currency and elevated international prices.
Brazil’s crude steel production dropped by 22.6pc to 2.1mn mt in May this year compared the same month the prior year, according to
World Steel Association data.