ArcelorMittal Romanian steel mill in problems as ice blocks transport on Danube.

By bne IntelliNews March 6, 2012
Romania's major steel company, ArcelorMittal Galati, has been unable to ship its exports because of ice blocks obstructing the transport on the Danube and has therefore reduced its operations close to a break-even point, news agency Mediafax reported. Company representatives explained that the decline in the country's exports observed at the end of last year and in early 2012 was partly caused by the difficult transportation conditions on the Danube. Indeed, the first low water levels followed by the freezing of the river (helped exactly by low water level) earlier this year impeded the transportation. In a related piece of news, the grain traders said that large wheat and maize exports have been postponed for the spring of 2012 when ships will be able to travel on the Danube. ArcelorMittal's Romanian steel mill is located on the Danube, close to the Black Sea. Earlier this month vast amount of ice blocked the transportation on the Danube. The company has said that it has blocked the access to the river in order to prevent any potential damages from the ice chunks. The steel company has been supplied with raw materials only by railway and this has increased significantly its operating costs.

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