ArcelorMittal, the world's top steelmaker, will shut down a blast furnace at its plant in Eisenhüttenstadt, Germany, in the next few weeks due to weaker steel demand.

"Due to the current seasonal slowdown and some regional demand fluctuations in Europe, ArcelorMittal is optimizing production flows and aligning production capacities to seasonal demand," it said is a statement released on Monday.

"Consequently, the small BF no.1 at ArcelorMittal Eisenhüttenstadt will be temporarily shut down until the demand situation supports a re-start."

European steel makers produced high volumes of steel in the first half this year as a restocking cycle boosted demand, but as restocking came to an end the excess supply made steel prices fall.

In order to support prices steel producers are now cutting their output.

"All leading indicators have definitely been suggesting slower growth in Europe and demand had to be cut in order to stabilise prices," said Macquarie head of commodities research Jim Lennon.

"We have seen pockets of weakness in Europe and steel makers have to respond by pulling supply out of the market to support prices."

Steel production in Europe was at 14.579 million tonnes in July, down from 15.700 million in June, according to data from the World Steel Association.

Chinese and global steel production fell slightly from the previous month but remained near record levels in July, in what is usually a seasonally slower quarter and despite concerns that oversupply and the economic slowdown may weigh on prices.