Luxembourg-based steel giant ArcelorMittal has confirmed that it has indefinitely postponed the construction of a $600 million steel bar mill in Mexico citing current market conditions.
ArcelorMittal spokesman Ricardo Guzmán said, "The construction of the new mill has been postponed but not suspended."
"The new mill is going to open, but first we must see the market's development. Unfortunately, right now we don't have a date for that," added Mr Guzmán.
The project was announced in August 2008. ArcelorMittal has not disclosed where it would build the mill, but previously said that the steel mill would serve mainly the construction and automotive sectors while the facility would use an electric arc furnace. Upon commencing production, the mill was expected to produce one million mt of billets and roll 500,000 mt of bars per year.
As per local Latin American reports, two of ArcelorMittal Mexico's five rebar rolling mills are currently closed, with a third facility recently cutting back on production.
Meanwhile, it is reported that ArcelorMittal's Brazil-based flat steel subsidiary ArcelorMittal Tubarão in Espírito Santo state is expected to reach 90 percent capacity in July from the current operating capacity of 80 percent after stoppages earlier this year.
The No. 2 blast furnace, of Tubarão's three blast furnaces, has been turned off for maintenance and is expected to be restarted in the first half of 2010. Tubarão subsidiary's total annual production capacity equals 7.5 million mt.
Meanwhile, the steel giant's Brazilian long steel division ArcelorMittal Brazil, with a 3.9 million mt annual production capacity, is currently running at 75 percent capacity.