The company is trying to compete with energy and logistics costs in these countries, while at the same time struggling with global price decreases caused by the decline in China's demand for iron ore.
The recession in European steel markets and increases in production costs pose serious challenges for producers like Kryvyi Rih. Although the company is on track to reach half of pre-war production levels by mid-2023, uncertainties ahead cast a shadow over its growth ambitions. In particular, logistics problems, global demand contractions and oversupply in Europe threaten ArcelorMittal's competitiveness.
However, despite these headwinds, the company achieved a 93% increase in steel production in the first quarter of 2024. While this growth shows that Kryvyi Rih is resilient to the challenges, CEO Mauro Longobardo points out that current internal and external factors make sustainable growth difficult.
Going forward, easing pressures on logistics and energy costs, as well as a recovery in global steel markets, are expected to play a critical role in the company's future success.
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