Poland`s JSW, the European Union`s biggest coking coal producer, does not expect coal orders from major client ArcelorMittal to fall following the steelmaker`s decision to halt operations at its blast furnace and steel plant in Krakow.
ArcelorMittal Poland said on Monday it plans to temporarily stop production its furnace and steel plant in southern Poland in September, citing rising carbon emission costs and surging power prices.
"We do not expect quantity cuts in coal orders from ArcelorMittal," JSW Chief Executive Daniel Ozon told Reuters. "The coke from ArcelorMittal`s coking plant in Poland will be delivered to other steel plants in Europe. I do not see significant risks in relation to ArcelorMittal`s statement yesterday."
Ozon added that he saw some signs of slowdown in the automotive sector but, based on talks with JSW`s clients, assumed that sales volumes should rebound next year.
Shares in JSW were 7.14 percent lower by 1151 GMT.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)