ArcelorMittal Sourcing declares FM amid operation disruptions due to outbreak: sources

Singapore — The world's largest steelmaker's sourcing arm, ArcelorMittal Sourcing, declared a force majeure Thursday amid operation disruptions at ArcelorMittal sites in Europe following the coronavirus outbreak, according to a notice seen by S&P Global Platts that was sent to coal sellers the company buys from.

ArcelorMittal could not be immediately reached for a comment.

It was unclear if the force majeure was declared on a particular product or a number of products that ArcelorMittal Sourcing buys. However, at least two sell side sources for Australian metallurgical coal said they had received the notice Thursday.

In the FM notice sent to the sellers and seen by Platts, ArcelorMittal Sourcing said that they were "unable to provide an estimate of when it will be able to overcome the effects of the Force Majeure Events."

Meanwhile, the steelmaker issued a public statement Thursday stating that the company was "taking steps to reduce production from its European operations ... and that production [was] aligned with demand."

"I guess there are more [of such cases] to come when countries in the European Union are all suffering from COVID-19," a sell side source for Australian metallurgical coal said Thursday.

ArcelorMittal has steel plants in 18 different countries which produced 89.8 million mt of crude steel in 2019.