Steel producer ArcelorMittal is reducing European flat product output in response to the spreading coronavirus, the company has told Argus.
"We will continue to monitor the evolution of the coronavirus and its implications for steel demand in each of our operating markets," the company said.
Capacity reduction at its works in Taranto, Italy, has already been confirmed, but market chatter suggests that cuts are being made at other plants. Sources suggest that output in France has been affected by the coronavirus — with the country on lockdown, this would not be surprising, nor given the amount of carmakers that are temporarily stopping production.
ArcelorMittal has plants in Dunkirk, Fos-sur-Mer and Florange producing coils. The company would not elaborate on which sites are slowing, but did confirm that there are sites outside of Italy curbing output.
Sources suggest that ArcelorMittal, alongside other European steelmakers, has seen customers pulling orders and reducing volumes because of the virus.
Some service centres selling primarily to the automotive supply chain suggest that they could see a demand drop of 60-80pc with all the carmakers that have gone off line. Those service centres and distributors selling to general industry suggest that they will be buying 70-80pc of their normal requirements as a portion of their customers have stopped producing, but not to the same extent.
Tata Steel said the virus has had no impact on its operations so far, but added that it would "continue to carefully manage our production to ensure it is aligned with market demand".
A Salzgitter spokesman said the company was discussing what to do, while a ThyssenKrupp spokesman said yesterday that production has so far been unaffected.
By Colin Richardson
