Steel News

ArcelorMittal Kryvyi Rih recently halted its steelmaking and rolling operations due to water impacts following a dam failure at the Kakhovska Hydropower Plant. The production halt could affect Ukraine's steel industry in the near term. ArcelorMittal Kryvyi Rih has halted productionUkrainian steel and long steel producer ArcelorMittal Kryvyi Rih recently halted steel production and rolling activities. According to reports, the halt stemmed from the dam collapse at the Kakhovka Hydropower Plant due to suspected Russian influences. So far, no results have determined whether the production halt will affect Ukraine's steel industry prices.The plant has stopped production since June 6 and will resume operations if the water in Lake Kakhovka shows signs of decreasing. Meanwhile, blast furnaces, coke smelters, and iron ore mining operations continue to operate. The source also said that the business continues to deliver goods on schedule.The steel industry may be affected in the near futureThe dam is located on the Dnipro River in Ukraine's Kherson region. ArcelorMittal Kryvyi Rih steel mills use Lake Kakhovka's water during steelmaking and cooling. The dam collapse seriously impacted the downstream region and significantly affected steel production. However, there is no information shared about the amount of water that ArcelorMittal Kryvyi Rih consumes, but certainly, the amount of water consumed by the steel industry is not a small number. On June 7, ArcelorMittal Kryvyi Rih announced that there would be no water supply for production on June 8, forcing employees to work from home or take unpaid leave. The plant also said it would update the water supply situation daily to ensure operations could still occur.In the first 4 months of 2023, Ukraine's crude steel production decreased by 54% compared to last year. According to a report from the local steelmaking association, Ukr Metalur Prom, steel production fell from 3.93 million metric tons to nearly 1.81 million metric tons. With such a sharp decrease in steel output, the industry may increase prices soon.What opportunities exist for Vietnam's steel industry?ArcelorMittal Kryvyi Rih is stopping production due to the impact on the water supply after the dam collapse at the Kakhovska Hydropower Plant. The production stoppage means that the steel price in this market will increase. This is an opportunity for Vietnam's steel industry to export products to this potential market. With international-standard quality and a reasonable cost, Vietnamese steel will be a reasonable source for the Ukrainian steel market. Besides, the Ukrainian steel market was also affected by the Russia-Ukraine war. Several leading steel producers in Ukraine have plans to cut production output to a minimum due to delayed rail and port operations. This will create opportunities for the steel industry in other markets, typically Nam Kim, Hoa Sen, Hoa Phat, and Ton Dong A... with revenue growth mainly coming from exports to the EU market.Above is information about ArcelorMittal Kryvyi Rih's production cuts due to the impact of the dam failure at the Kakhovka Hydropower Plant. The dam's collapse led to decreased steel output, which is also an opportunity for the Vietnamese steel industry to export steel to this market. If you need to buy Vietnamese steel, please contact us here. We ensure that we provide quality steel products at a reasonable cost.