ArcelorMittal tumbles after cutting European steel output

Bloomberg

ArcelorMittal fell the most in two years after announcing that it’s cutting steel production across its European plants to cope with weak demand and rising imports.
The world’s largest steelmaker will reduce primary production in Dunkirk, Fra-nce and Eisenhuettenstadt, Germany, according to a statement on Wednesday. It will also cut output in Bremen, Germany and extend a stoppage planned in Asturias, Spain in the fourth quarter.
The company didn’t provide any numbers on how much output will be curbed, only saying that it would “align its production to the current market demand.”
European steelmakers ha-ve been hit by a slump in demand from Germany’s auto industry and competition from cheap imports.
That’s also making it hard for them to pass on higher prices for iron ore, a key steelmaking ingredient, that are being stoked by mine closures in Brazil.
“This is again a hard decision for us to have taken but given the level of weakness in the market, we feel it is the prudent course of action,” said Geert van Poelvoorde, the chief executive officer for the company’s flat products division in Europe. “This will be a temporary measure that will be reversed when market conditions improve.”
This is the second time this month that ArcelorMittal has announced production cuts. It previously said it would shutter plants in Poland and reduce production in Spain in response to the worsening market.
Earlier this month, regional lobby group Eurofer warned the industry is on the cusp of a crisis.