ArcelorMittal Fos-sur-Mer Shutdown Delayed After Fire Incident

ArcelorMittal Fos-sur-Mer Shutdown Delayed Amid Fire Repairs

ArcelorMittal has temporarily halted production at its Fos-sur-Mer steelworks in France. The shutdown, initially planned for about one month, may extend depending on repair progress after a fire. The fire broke out in early October on conveyor lines supplying raw materials. Fortunately, no blast furnaces were damaged, and no casualties occurred. However, the conveyor support structure and an electrical substation sustained significant damage.

Currently, none of the blast furnaces at Fos-sur-Mer operate. The fire has forced the company to adjust production schedules, running other lines on a rotating basis. Affected employees receive training, vacation time, or part-time work during downtime. Meanwhile, delivery delays and lack of a clear restart timeline have unsettled some hot-rolled steel buyers.

Impact on European Steel Market and ArcelorMittal’s Strategic Plans

The Fos-sur-Mer plant’s downtime will likely worsen the shortage of rolled steel products in Europe. Analysts note that this disruption, combined with new EU trade defense proposals, the Carbon Border Adjustment Mechanism (CBAM), and rising protectionism, could drive coil prices higher.

ArcelorMittal is also investing €53 million to upgrade blast furnace No. 1 at Fos-sur-Mer. This upgrade aims to extend the furnace’s service life and improve efficiency. Starting 2024, only one blast furnace will operate at the site. The modernized furnace No. 1 is expected to replace blast furnace No. 2 reliably.

SuperMetalPrice Commentary:

ArcelorMittal’s Fos-sur-Mer fire and subsequent shutdown highlight the fragility of European steel supply chains. As the company navigates repairs and upgrades, steel markets face tighter supplies and rising prices. The situation underscores the urgency for resilient operations amid evolving EU policies and market pressures. Investors and industry watchers should closely monitor production updates and policy developments impacting regional steel pricing.