ArcelorMittal expects no change in the future projects in Algeria

Sunday, 23 Nov 2008

ArabSteel reported that Al Hadjar Company, in which ArcelorMittal holds majority stake of 70% saw a crude steel production during the first 9 months of 2008 at 982,524 tonnes against 1,803,242 tonnes during the same period of 2007. The liquid steel production also declined to 520,017 tonnes against 946,915 tonnes during the same period of comparison of both 2008 and 2007. This decline of the crude steel production affected its actual production of long and flat products.

As per report, during the first 9 months of 2008 it produced 115,758 tonnes of reinforcing steel against 273,698 tonnes in the same period of 2007. Production of hot rolled flats also fell down to 276,449 tonnes against 421,616 tonnes in the same period of 2007.

As a result, sales to the domestic market were affected. Its volume of sales during the first 9 months of 2008 of long products amounted to 368678 tonnes against 593,057 tonnes in the same period of 2007. Its sales of flat to the domestic market fell down to 154,289 tonnes against 207,960 tonnes during the comparison period of 2008 against the same period of 2007. Volume of exports of flat products during the first 9 months of 2008 amounted to 120,159 tonnes against 191,841 tonnes in the same period of 2007. The only one increase achieved is of the pipe sales to the domestic market. The volume of its sales amounted to 23,038 tonnes against 22,813 tonnes.

According to officials at Al Hadjar, normal production is likely to return from the beginning of November 2009, as the development and upgrading operations of the blast furnaces and the other production units will have been completed and quantities of steel billets of about 45,000 tonnes will have been imported to offset the short production of these products.

The officials also said that there will also be no change in the future projects because the present situation is temporary and does not call for any change of. The shortage which took place in the production of long products and flat products will be offset through imports. It is expected that the governmental imports of reinforcing steel will be 500,000 to 1,000,000 tonnes for 2008 and 2009 to cover the requirements of the domestic market of this product needed for the new projects of housing, and construction of roads which are now under execution in Algeria.