ArcelorMittal plans to cut spending on US assets

ArcelorMittal, the world's largest steelmaker, has announced cutbacks at its US steelmaking facilities. The company reported a $ 8 billion loss in 2015, citing low iron ore prices as one of several reasons that led to huge losses throughout the year.

Several cost-cutting measures have already been implemented at U.S. facilities, including restricting procurement and revising employee health plans, according to the company. The company is also making efforts to stimulate productivity improvements and the realization of asset optimization in its steelmaking facilities. In addition, ArcelorMittal plans to start idling at the East Chicago facility in an effort to streamline its operations.

The company believes that the increased level of steel imports from China has also affected the operations of steel mills in the United States. While trade measures taken by the US and EU authorities are expected to offer some relief, Chinese steel exports are not set to decline significantly this year, mainly due to a slowdown in economic growth in that country.

Consolidated shipments of ArcelorMittal steel during the last quarter of 2015 decreased by almost 6.3 percent to 19.7 million tonnes. Shipment volumes for the company's operations in the NAFTA region fell sharply during the quarter. Steel shipments from the NAFTA region declined 18.5 percent during the quarter to 4.6 million tonnes. The supply of rolled products from the United States and Mexico plunged by almost 20 percent. The volume of shipments of long products decreased by 13 percent.

Meanwhile, the company blamed the fall in iron ore prices as one of the reasons for the impairment of operations associated with its mining business. The company has focused on several cost cutting measures over the past year to adapt its business to the prevailing tough market conditions. These measures gave the company the opportunity to slightly reduce its net debt from 2014 levels.