ArcelorMittal loses capacity after Mexican blockade

It is reported by Platts that ArcelorMittal, the world’s biggest steelmaker, has lost 90kt of finished steel production at its Lazaro Cardenas plant in Mexico due to a series of blockades by transport workers over the past five months.

The loss has cost the company an estimated US$20 million as shipments of iron ore from the company’s Las Truchas mine have been disrupted.

In October last year the blockade forced ArcelorMittal to close its electric arc furnaces and this led to a 70% cut in production.

While a deal has since been reached, the amount paid to transport workers remains unchanged.

Source: Platts.