French strikes shutter ArcelorMIttal steel plant

London — Steelmaker ArcelorMittal has declared force majeure at its Fos-sur-Mer steel plant in southern France because of ongoing strikes at the port of Marseille, the company said in a letter to customers seen by S&P Global Platts.

ArcelorMittal said in the letter, dated January 20, that it would need additional time to carry out already booked orders.

"As a consequence of this situation -- which results in a paralysis of the port of Marseille and the Fos operations -- we are unfortunately unable to perform all the undertakings contactually agreed with your company," the letter said.

In a statement sent to Platts, ArcelorMittal said: "All the yards on which we store our finished products have almost reached their maximum capacity. The rate of production of the HSM [hot strip mill] has slowed down. If the movement continues beyond this week, we would consider stopping production at this facility for several days."

The steelmaker also said that it would be concerned about the risk of supply disruptions due to delays in unloading raw materials.

Fos-sur-Mer produces 4 million mt/year of steel and is one of the biggest mills that produces flat steel products in the country.

In addition to current capacity cuts in the European coils market and lack of imports, availability is set to tighten in the market.

"The ongoing strike-wave and anti-government protests do really continue to be worrisome, particularly the railway system and such a major transportation means are continuing to block transports to steel consumers in a big way," a trading source told Platts.

France has been affected by on-off strikes since late last year over proposed pension reforms by the government, impacting the entire transport sector across the country.