It was reported that ArcelorMittal's Fos-sur-Mer plant in France has shut down its hot-strip mill (HSM) after an equipment failure happened last week.

ArcelorMittal mentioned the hot-strip mill was expected to resume production in the near future.

At present, the delivery period of European steel mills has been extended, and the shortage of spot supply may continue until the end of this year. Several mills were already 6-8 weeks behind the production schedule.

During the peak of the COVID-19 epidemic, many blast furnaces owned by ArcelorMittal were forced to shut down. Although they have now resumed operation, the increase in production capacity has not brought a positive impact on the market.

The supply shortage was expected to ease in the first quarter of next year, but some market participants indicated that demand from the automotive industry may also increase further.