Domestic demand for ArcelorMittal Kryvyi Rih’s products will be 60% of the pre-war level after the war – CEO

Demand for ArcelorMittal Kryvyi Rih’s products in Ukraine in the first year after the end of the war could be about 60% of pre-war volumes. In the future, it will grow by 20-30% annually. This assessment was made by Mauro Longobardo, CEO of ArcelorMittal Kryvyi Rih, in an interview with Forbes.

According to him, the first post-war year will be spent on approving and developing projects and holding tenders. Before the war, the domestic market accounted for a maximum of 20% of the company’s production.

Mauro Longobardo believes that the bottleneck is Ukraine’s ability to implement several large projects at the same time.

“There were a lot of interesting projects in 2021, but not enough people. Even if there is a post-war investment boom in Ukraine, we will feel it only in a few years,” said the CEO of ArcelorMittal Kryvyi Rih.

Mr. Longobardo also commented on how long the low global prices for steel products will last. In his opinion, the market has not yet reached the bottom.

“China is the key market maker. The decline in construction in this country has reduced demand for steel and ore. The released volumes went to other markets, and now we see very low prices in Eastern Europe. Recently, the Chinese government announced stimulus for the economy and steel prices went up. But when the stimulus plan was made public, it turned out that it was unlikely to help, and prices fell again,” he said.

The CEO of ArcelorMittal Kryvyi Rih called the US elections another marker. In his opinion, if Donald Trump fulfills his promise and imposes tariffs on imports, this will also have a negative impact on global prices. In this case, producers who exported to the United States will be forced to redirect their volumes to other markets.

As GMK Center reported earlier, Europe is becoming a priority export market for ArcelorMittal Kryvyi Rih, but the company will not be able to meet all EU standards immediately after the war ends, Mauro Longobardo said. In addition, he believes that Ukrainian steel companies should be temporarily exempted from financial obligations under the CBAM while maintaining reporting.