Arselormital stops the production of metal rolling in Warsaw

The largest steel corporation in the world Arselormital suspended production at the metallurgical plant in Warsaw. This is due to the lack of demand for metal rolling. The metallurgical industry of Poland fell in a barren struggle for the buyer in the construction valve market, orders for which have not been in a row for several months in a row. Reuters writes about this.

“Such a situation has developed mainly due to the use of illegal practice in the trade in metal distribution and fraud with VAT compensation for the import of reinforcing rental by neighbors - importers of reinforcement,” the statement by Arselormital Warsaw said.

The largest construction companies in Poland, the main consumers of Arselormital products, are trying to avoid bankruptcy by all means, having involved in disadvantageous contracts, and the demand for new housing has been permanently falling since mid -2012.

Arselormital said that steel production in Warsaw was stopped for 9 days, and rental for 11 days since January 29.

As we are already reported , a metallurgical giant continues the policy of stopping excess capacity in the European Union. Starting from September 2012, the company completely stopped blasting production in Floorange, closed partially the production of metal products in Belgium, and also plans Mass abbreviations in Bosnia and Ukraine.

Against the backdrop of a 10% fall in the demand for metal distribution in the eurozone, Arselormital lost more than 92% of his profit and was forced to read out $ 4.3 billion of the value of European assets.

Meanwhile, Lakshmi Mittal, the Executive Director of Arselormital, literally two weeks ago said that the global demand for steel would grow by 2-3% in 2013 due to developing markets and the USA. Demand in the eurozone, according to Mr. Mittal, will remain at the level of 2012.