The steel mill's results in Bosnia were affected by falling demand for steel, rising electricity prices and falling steel prices.
Steelmaker ArcelorMittal Zenica in Bosnia and Herzegovina, a subsidiary of global steelmaker ArcelorMittal, ended 2023 with a loss of BZD 159 million (US$88.2 million). This is reported by Nasdaq .
The company's long-term debt increased by 400% year-on-year – to BDT 80 million.
Last year's results were affected by a drop in steel demand, a 20% annual increase in electricity prices and lower prices in the global steel market.
«As our 2023 financial results published today show, ArcelorMittal Zenica is in a very difficult situation. We do not expect market conditions to improve in the near future,” the company said.
The Zenica steel plant produces around 700 thousand tons of steel per year and employs 2.2 thousand people. The main product line includes rebar in bars and coils, wire rod, screens and gratings.
As previously reported by Compraço, ArcelorMittal Zenica suspended production in November 2023.
The main reasons for the plant's suspension included a decline in demand in the European steel market during the war in Ukraine; spikes in energy prices and production costs; and inflation. Furthermore, the company emphasized that European steel producers are forced to compete with cheaper imported products, especially from Turkey.
In January 2024, the company announced the resumption of steel production.
