Argentina's largest long steel producer, ArcelorMittal's Acindar, suspended its steelmaking operations at the Villa Constitucion plant, and also suspended around 300 workers, sources said Wednesday.
Operations were halted Monday and may resume in the first week of August, since the target of the stoppage "is to level the company's steel products inventories," described as currently at high levels, mill sources said.
Another source said that due to low demand in the Argentinian market, "Acindar aims to reduce its output for the next 18 months."
The company could not be immediately reached for comment.
Acindar has already halted operations earlier this year, blaming the decline in shipments, forcing it to adjust its production level.
The company had said reduced output level [at least half] would continue through April and May, while sources said the company's productive level was also reduced in June and July.
The company has three electric arc furnaces at its plant in Villa Constitucion.
Acindar's five plants are in Santa Fe, Buenos Aires and San Luis provinces, with total annual production capacity of long rolled products of 1.7 million mt -- 300,000 mt of rebar, 610,000 mt of wire rod and 880,000 mt of sections.
