He noted that record levels of steel imports into the United States, up 70% for flat carbon products since 2013, have eaten away at domestic market demand. As a result, ArcelorMittal's hot strip mills have been operating at low capacity utilization rates (70%).  Harshaw emphasized that ArcelorMittal's total U.S. operations cost the company more than $1 billion in maintenance costs per year.

"It is not sustainable to operate multiple HSMs at low utilization rates when the same volume of steel could be produced by fewer HSMs at higher utilization rates. Why run five HSMs at 70 percent when you can finish the same tonnage running four HSMs at 90 percent capacity?" Harshaw commented.

This goal may require the company to divest of underperforming assets while maintaining the healthiest and most strategic operations at full or close to full capacity.

"For our facilities to succeed," he continued, "there is no doubt we need a stronger U.S. market, where imports compete fairly rather than via unfair trade practices to gain market share. We also need the right set of assets that match the geographic reach of our customers, a skilled workforce that embraces the competitive forces at play in our industry while being cost conscious on all fronts. Companies that adapt to changing conditions will survive; those who refuse to change will continue to fill the coffers of the bankruptcy lawyers."

Source: ArcelorMittal USA Blog