ArcelorMittal Kryvyi Rih, the Ukrainian subsidiary of Luxembourg-based ArcelorMittal, announced the suspension of several mining and steel operations, citing disruptions in logistics services provided by Ukrainian railway operator Ukrzaliznytsia JSC. The company said that insufficient deliveries over the past month have reduced raw material inventories to critically low levels, making it impossible to maintain uninterrupted operations at several key plants.
The problem has already affected both steel and mining operations, and the company has warned that further production cuts may become inevitable unless rail logistics are stabilized soon.
The disruptions are affecting both steelmaking and mining operations
According to ArcelorMittal Krivoy Rog, the most pressing problem is the unstable supply of fluxes, which are necessary for the production of iron. Because supplies were insufficient to ensure continuous operations, the company shut down one of its two blast furnaces, two sintering machines and one ore beneficiation plant until supplies and minimal inventories were restored.
The logistics disruption also affected the company's mining segment, as a lack of trains to ship iron ore concentrate led to the suspension of production ore. This means that the problem is not limited to inbound shipments of raw materials, but also extends to outbound shipments of the company's own products.
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