US steelmakers are gradually reducing production due to falling demand amid the coronavirus pandemic. Last week, US steel output fell 4% compared to the end of February (capacity utilization was below 80%) and, according to VTB Capital analysts, the decline will continue.
Steel Gerdau announced a suspension of operations in North America, US Steel – on the indefinite closure of production facilities in Michigan (Great Lakes plant), as well as the beginning of a 48-day suspension in April of a blast furnace at the Gary site.
ArcelorMittal amid falling demand announced plans to shut down part of blast furnaces at Indiana Harbor and Dofasco. Both of these plants produce about 11 million tons of steel annually.
“However, the announced measures may not be sufficient amid falling demand in the short term due to quarantine conditions,” VTB Capital said in its review. .