ArcelorMittal Brazil to idle BF No. 3 in Tubarao, cut flats and longs output

Sao Paulo — ArcelorMittal Brazil decided to temporarily adjust production in both its flat and long steel units from April on, following the serious impacts of the coronavirus crisis, the steelmaker said Friday.

On the flat steel side, the company will halt for 45 days the No.3 blast furnace at its Tubarao plant in Espirito Santo state. The furnace has the capacity to produce 2.5 million mt/year of crude steel.

The unit's BF No. 2 has been idle since July 2019, due to market conditions. The Tubarão complex's total capacity amounts to about 7.5 million mt/year.

"Customer service will continue through the supply of inventoried material, according to market needs and demand," ArcelorMittal Brazil said in an emailed statement to S&P Global Platts.

Moreover, the company said without detailing that it will temporarily reduce production rates at some of its long steel units, although the Joao Monlevade plant, with 1.1 million mt/year capacity, and iron ore mine Mina do Andrade will remain fully operative.

"Company actions are focused on ensuring the health and safety of employees and third parties and, at the same time, ensuring the sustainability of the business, essential in the production chain of critical inputs for the industry that directly contributes to the fight against coronavirus," the steelmaker said, adding that it is confident that preventative measures adopted collectively by the government, the private sector and society "will contribute to the containment of the pandemic, making it possible to overcome this unprecedented crisis that affects the whole world."

ArcelorMittal Brazil operations includes six plants in Brazil (Sol, ArcelorMittal Tubarao, ArcelorMittal Vega, ArcelorMittal Brasil, ArcelorMittal Brasil 2 and ArcelorMittal Sul Fluminense) one in Argentina (Acindar), one in Costa Rica (ArcelorMittal Costa Rica) and one in Venezuela (Industrias Unicon).