Overview

• The CFE says its supply was never interrupted and blames the halt on an internal transformer failure at ArcelorMittal’s substation.
• ArcelorMittal says two power cuts on July 22 damaged three of its four steam turbines and forced the furnace to shut down.
• The steelmaker estimates repairs will take four to six months and cut national steel-longs output by about 30%.
• Union contract talks expire August 1 and could prompt a strike at the Lázaro Cárdenas plant if no agreement is reached.
• The outage occurs at a challenging time for Mexico’s steel sector under U.S. tariffs and falling global prices, raising concerns over import reliance.