Steel production fell worldwide last month as Russia’s top oil producer, Rosneft, expanded exploration to Venezuela and ArcelorMittal USA has lost nearly $300 million since it was created via a merger in 2006.
WSA: Steel Production Fell Last Month
Global crude steel production fell 2.1% in May from the same month a year ago, as output declined in most major producer regions including China, figures from the World Steel Association (Worldsteel) showed on Monday.
Global crude steel output fell to 139 million metric tons in the month while output in China, which produces half the world’s steel, fell 1.7% to 70 million mt.
Russia’s Rosneft Signs Exploration Deal With Venezuela
Venezuelan state oil company PDVSA said this week it has signed investment agreements with top Russian oil producer Rosneft, including a plan to create a joint venture to produce natural gas in the South American country.The venture would include the fields of Mejillones, Patao and Rio Caribe – all part of the large offshore Mariscal Sucre gas project.
ArcelorMittal USA Lost $1.5 Billion
ArcelorMittal – forged through an international merger of steel companies in 2006 – has pumped a huge amount of money into its US operations, but hasn’t seen a profit from it, ArcelorMital USA Flat Carbon President and CEO Andrew Harshaw told the Times of Northwest Indiana.
“Our USA business is not getting a return on its investment,” he wrote in a blog post. “Since 2010, the company has invested an average $1.5 billion per year into our USA facilities in both capital investment and the long-term maintenance of our assets. During those same five years, our USA business lost nearly $1.5 billion dollars, an average loss of $293.8 million per year.”