Monday, 26 November 2012

Another indicator of industrial slowdown

Mechel (MTL) Temporarily Halts Steelmaking Facilities in Romania, Ukraine

23 November, 2012

Mechel OAO (NYSE: MTL), a Russia-based integrated mining and steel company, reported a temporary suspension of steelmaking facilities in Romania and Ukraine due to unfavorable conditions for raw materials and finished steel products.

The company temporarily halted production at Donetsk Electrometallurgical Plant (DEMZ), which is part of Mechel's steel division, and the scheduled temporary suspension of production at the group's Romanian steel-making facilities that are part of Mechel's Eastern European Steel Division.

Starting on November 21 and 22, electric smelting facilities at Mechel Targoviste and Ductil Steel Otelu Rosu were temporarily halted. Rolling production at Mechel Targoviste will also be temporarily suspended starting November 27 once production plans are met. Starting December 15, rolling and hardware production is planned to be temporarily halted at Ductil Steel Buzau, Laminorul Braila and Mechel Campia Turzii.

Italy's Lucchini to halt steel furnace temporarily

23 November, 2012

Lucchini, Italy's second largest steel producer, will temporary shut down its Piombino blast furnace in December due to weak market conditions, the debt-burdened company said on Friday.

The Italian and European steel industry face a time of hardship due to declining demand and economic weakness.

"I can confirm that a temporary closure will take place due to market conditions. We make steel on order and given the current situation we have decided to halt the blast furnace," a spokesman for Lucchini said.

"In Italy we are not the only company planning to halt its furnace. We all know how difficult the situation is."

Piombino, Lucchini's main production site, can produce up to 2.5 million tonnes of steel every year. This compares with Italy's total production of 28.7 million tonnes in 2011.

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