For the second time this year, the Argentinian steel producer Acindar, controlled by ArcelorMittal, will stop production operations due to a shortage of demand for its products.
According to the local press, the stoppage of public works was the main reason behind the decision, as informed by Acindar officials to representatives of the workers union UOM of Villa Constitucion, where the plant is located.
The stoppage will include all areas during a period of three weeks, while the direct reduction area will be idled for 75 days.
Acindar has a yearly production capacity of 1.7 million mt, but recent expectations for 2024 were for a volume slightly exceeding 1 million mt, but now the expectations are reviewed to less than 700,000 mt, a volume even lower than the 870,000 mt produced during the Covid 19 pandemic in 2020.
Sources linked to the company mentioned that the alternative to maintain operations of the plant is to increase export sales, as there are no signs that the demand from non-government domestic players could increase in the short term.