How are the main steel producers reacting to COVID-19?

The big steel producers from all over the world have to adapt to the situation created by COVID-19.

Tata Steel, India’s largest steel producer, has initiated a twice-daily sanitization of staff vehicles. And invited pregnant women to work from home to reduce the spread of COVID-19. The company has also set up a COVID-19 medical task force to assess the medical preparedness of Tata Steel hospitals in Jharkhand and Odisha. Where the company owns working mines.

The world’s largest steel producer, ArcelorMittal, is taking measures to reduce production in its European operations. To ensure the well-being of its employees and to align production with demand. The announcement reflects the seriousness of the COVID-19 situation in Western Europe. And the actions taken by the company are designed to protect its employees and to prevent the spread of the infection.

Voestalpine reduces working hours

Austrian steel producer Voestalpine has announced a reduced working model. To help combat the challenges they face due to COVID-19.

„As a result of the massive capacity reductions and current production interruptions in the automotive, aerospace, mechanical engineering and oil and natural gas industries. In just a few days, demand in the company’s key customer segments collapsed”. The company stated, adding that in order to achieve the necessary level of flexibility in the following weeks. And to secure jobs. The reduced working schedule is applied in approximately 50 companies of the European group (in Austria, as well as in Germany, Belgium and France).

In the U.S., companies such as US Steel, Cleveland Cliffs and ArcelorMittal (which supplies sheet metal for the Auto sector) will be greatly affected. Compared to smaller operators, such as Steel Dynamics, which do not supply large quantities of sheet metal to the Auto sector.  The automotive sector accounts for 25% of US steel demand. And over 40% of this demand is represented by sheet metal, according to Key Banc analyst Phil Gibbs.

China is located among the major producers of steel and continues its production

Despite the devastation caused by the COVID-19 virus, the Chinese continued to produce steel throughout the crisis, producing 154.7Mt of crude steel in the first two months of 2020, up 3.1% compared to the same period last year. . However, disruptions in the transport chain meant stockpiling due to weak domestic demand.

The Russian steel producer MMK is taking active measures to prevent the spread of the COVID-19 virus. Business trips abroad for employees have been suspended, and trips to Russia are restricted. The company recommends employees who have visited countries with active cases of Coronavirus to enter a 14-day quarantine at home. Having the option to work remotely.

There are plans to reduce production volumes and carry out equipment repairs during this time.

COVID-19 has affected steel companies around the world. And many conferences and exhibitions in the field have been canceled or postponed.

Article source: https://www.steeltimesint.com/news/view/news-digest-an-update-on-covid-19-and-the-global-steel-industry