Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

ArcelorMittal Brazil has reduced pays and shifts of 163 workers at its Monlevade mill in the South American country to protect its employees from the COVID-19 pandemic, which could affect the company’s longs steel production.


The company has announced pay cuts of up to 25pc and shifts of 90 days, the local union Sindmon-Metal said in a statement, adding that this decision will also affect the administrative, human resources, controllers, suppliers, managers, and directors, among others.


The reduction of working hours and wages, has been implemented according to the necessity of each area and unit, a company spokesperson told Davis Index, adding that the initiative is an emergency step and temporary in nature.


The steel producer has made every effort to keep the job positions, the spokesperson pointed out adding that the steelmaker is continuously evaluating alternatives to adapt to the context of the current crisis.


The Monlevade mill in João Monlevade, Minas Gerais, produced 1.1mn mt of long steel products in 2018 including wire rod, according to figures from the company’s annual report.


Apart from ArcelorMittal, Brazilian steelmakers and iron ore miners such as Usiminas, Gerdau, and Vale have also taken steps to reduce or shut down production in compliance with COVID-19 shutdown imposed by the government.


Crude steel output in Brazil fell by 8.2pc to 2.6mn mt in March this year, compared the same month the prior year, according to the latest figures from the Brazilian Steel Institute (Aço Brasil). Crude steel production in March last year reached 2.8mn.

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