ArcelorMittal Mexico, a leading steel producer in the country, finds itself in a precarious situation as an illegal blockade by members of Section 271 of the Mining Union enters its fourth day. The blockade, which began on Friday and continues to hinder operations, has obstructed access to both the transformer plant and the mine located in the La Mira property, raising concerns about the safety of workers and the integrity of the company's facilities.
In a recent development, ArcelorMittal Mexico received notification of a strike scheduled for June 4 if an agreement between the company and the union is not reached. However, the current obstruction of access is occurring outside the scope of the legal framework, as the company is not currently under an official strike.
The prolonged blockade has prevented ArcelorMittal Mexico from ensuring the necessary equipment to maintain the proper functioning of all processes. Of particular concern is the imminent jamming of the Blast Furnace, which poses a significant risk to the operational continuity of the company. The potential impact on the workforce, which comprises more than 8,000 direct and indirect collaborators, is a grave concern for ArcelorMittal Mexico.
Prior to the blockade, ArcelorMittal Mexico officially met with the Mining Union to discuss and review the amounts corresponding to each worker for Workers' Profit Sharing, as mandated by the Federal Constitution and the Federal Labor Law. The company asserts that these amounts were paid in a timely manner. However, a group of union members, dissatisfied with their PTU payments, has continued to block access to the facilities.
ArcelorMittal Mexico reaffirms its commitment to adhering to legal requirements and expresses its willingness to engage in dialogue within the framework of the law. The company is urgently calling on all involved parties and requesting the intervention of the relevant authorities to swiftly reactivate operations and minimize the risk to the economic growth of Michoacán.
The illegal blockade has not only jeopardized the safety of workers and the integrity of ArcelorMittal Mexico's facilities but also threatens the livelihoods of thousands of individuals who depend on the company's operations. The potential impact on the local economy is a growing concern as the blockade persists.
NYSE; MT
Current Price: $28.50
Change: -1.75%
Based on the technical analysis model, ArcelorMittal's stock is currently exhibiting a sideways trend. The support level is identified at $27.80, while the resistance level is observed at $29.20. The moving averages, particularly the 50-day and 200-day moving averages, indicate a neutral stance. The MACD suggests a lack of strong momentum in either direction. The Fibonacci retracement levels do not provide significant insights at the moment. The Bollinger Bands are showing a narrowing pattern, indicating a potential breakout in the near future, but the direction remains uncertain. Overall, the technical analysis suggests that ArcelorMittal's stock is currently in a consolidation phase, with no clear indication of a strong uptrend or downtrend.
